Correlation Between Merck and 842400HV8
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By analyzing existing cross correlation between Merck Company and EIX 57 01 MAR 53, you can compare the effects of market volatilities on Merck and 842400HV8 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 842400HV8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and 842400HV8.
Diversification Opportunities for Merck and 842400HV8
Very poor diversification
The 3 months correlation between Merck and 842400HV8 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and EIX 57 01 MAR 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIX 57 01 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 842400HV8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIX 57 01 has no effect on the direction of Merck i.e., Merck and 842400HV8 go up and down completely randomly.
Pair Corralation between Merck and 842400HV8
Considering the 90-day investment horizon Merck is expected to generate 4.8 times less return on investment than 842400HV8. In addition to that, Merck is 1.03 times more volatile than EIX 57 01 MAR 53. It trades about 0.0 of its total potential returns per unit of risk. EIX 57 01 MAR 53 is currently generating about 0.02 per unit of volatility. If you would invest 10,032 in EIX 57 01 MAR 53 on September 4, 2024 and sell it today you would earn a total of 305.00 from holding EIX 57 01 MAR 53 or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.06% |
| Values | Daily Returns |
Merck Company vs. EIX 57 01 MAR 53
Performance |
| Timeline |
| Merck Company |
| EIX 57 01 |
Merck and 842400HV8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and 842400HV8
The main advantage of trading using opposite Merck and 842400HV8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, 842400HV8 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 842400HV8 will offset losses from the drop in 842400HV8's long position.| Merck vs. Crinetics Pharmaceuticals | Merck vs. Enanta Pharmaceuticals | Merck vs. Amicus Therapeutics | Merck vs. Connect Biopharma Holdings |
| 842400HV8 vs. Spyre Therapeutics | 842400HV8 vs. Mind Medicine | 842400HV8 vs. Flexible Solutions International | 842400HV8 vs. Chemours Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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