Correlation Between Merck and STANLN
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By analyzing existing cross correlation between Merck Company and STANLN 32 17 APR 25, you can compare the effects of market volatilities on Merck and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and STANLN.
Diversification Opportunities for Merck and STANLN
Pay attention - limited upside
The 3 months correlation between Merck and STANLN is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and STANLN 32 17 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 32 17 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 32 17 has no effect on the direction of Merck i.e., Merck and STANLN go up and down completely randomly.
Pair Corralation between Merck and STANLN
Considering the 90-day investment horizon Merck Company is expected to under-perform the STANLN. In addition to that, Merck is 4.12 times more volatile than STANLN 32 17 APR 25. It trades about 0.0 of its total potential returns per unit of risk. STANLN 32 17 APR 25 is currently generating about 0.08 per unit of volatility. If you would invest 9,661 in STANLN 32 17 APR 25 on September 13, 2024 and sell it today you would earn a total of 200.00 from holding STANLN 32 17 APR 25 or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 16.8% |
| Values | Daily Returns |
Merck Company vs. STANLN 32 17 APR 25
Performance |
| Timeline |
| Merck Company |
| STANLN 32 17 |
Merck and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and STANLN
The main advantage of trading using opposite Merck and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN's long position.The idea behind Merck Company and STANLN 32 17 APR 25 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| STANLN vs. Meiwu Technology Co | STANLN vs. 17 Education Technology | STANLN vs. Afya | STANLN vs. Skillful Craftsman Education |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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