Correlation Between Merck and MQGAU
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By analyzing existing cross correlation between Merck Company and MQGAU 5376057 23 SEP 27, you can compare the effects of market volatilities on Merck and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and MQGAU.
Diversification Opportunities for Merck and MQGAU
Pay attention - limited upside
The 3 months correlation between Merck and MQGAU is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and MQGAU 5376057 23 SEP 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 5376057 23 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 5376057 23 has no effect on the direction of Merck i.e., Merck and MQGAU go up and down completely randomly.
Pair Corralation between Merck and MQGAU
Considering the 90-day investment horizon Merck Company is expected to generate 22.81 times more return on investment than MQGAU. However, Merck is 22.81 times more volatile than MQGAU 5376057 23 SEP 27. It trades about 0.1 of its potential returns per unit of risk. MQGAU 5376057 23 SEP 27 is currently generating about -0.02 per unit of risk. If you would invest 9,858 in Merck Company on September 13, 2024 and sell it today you would earn a total of 267.00 from holding Merck Company or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.82% |
| Values | Daily Returns |
Merck Company vs. MQGAU 5376057 23 SEP 27
Performance |
| Timeline |
| Merck Company |
| MQGAU 5376057 23 |
Merck and MQGAU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and MQGAU
The main advantage of trading using opposite Merck and MQGAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, MQGAU 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 MQGAU will offset losses from the drop in MQGAU's long position.| Merck vs. Emergent Biosolutions | Merck vs. Bausch Health Companies | Merck vs. Neurocrine Biosciences | Merck vs. Teva Pharma Industries |
| MQGAU vs. Univest Pennsylvania | MQGAU vs. LithiumBank Resources Corp | MQGAU vs. Bill Com Holdings | MQGAU vs. Encore Capital Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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