Correlation Between Merck and KIMCO
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By analyzing existing cross correlation between Merck Company and KIMCO RLTY P, you can compare the effects of market volatilities on Merck and KIMCO and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Merck with a short position of KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and KIMCO.
Diversification Opportunities for Merck and KIMCO
Very good diversification
The 3 months correlation between Merck and KIMCO is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P and Merck is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Merck Company are associated (or correlated) with KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of Merck i.e., Merck and KIMCO go up and down completely randomly.
Pair Corralation between Merck and KIMCO
Considering the 90-day investment horizon Merck Company is expected to generate 0.52 times more return on investment than KIMCO. However, Merck Company is 1.91 times less risky than KIMCO. It trades about 0.0 of its potential returns per unit of risk. KIMCO RLTY P is currently generating about 0.0 per unit of risk. If you would invest 10,517 in Merck Company on September 3, 2024 and sell it today you would lose (353.00) from holding Merck Company or give up 3.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 36.16% |
| Values | Daily Returns |
Merck Company vs. KIMCO RLTY P
Performance |
| Timeline |
| Merck Company |
| KIMCO RLTY P |
Merck and KIMCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and KIMCO
The main advantage of trading using opposite Merck and KIMCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, KIMCO can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KIMCO will offset losses from the drop in KIMCO's long position.| Merck vs. Pfizer Inc | Merck vs. Johnson Johnson | Merck vs. Highway Holdings Limited | Merck vs. QCR Holdings |
| KIMCO vs. AMCON Distributing | KIMCO vs. Marchex | KIMCO vs. CarsalesCom Ltd ADR | KIMCO vs. FitLife Brands, Common |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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