Correlation Between Merck and TAISEM
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By analyzing existing cross correlation between Merck Company and TAISEM 45 22 APR 52, you can compare the effects of market volatilities on Merck and TAISEM 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 TAISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and TAISEM.
Diversification Opportunities for Merck and TAISEM
Very weak diversification
The 3 months correlation between Merck and TAISEM is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and TAISEM 45 22 APR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAISEM 45 22 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 TAISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAISEM 45 22 has no effect on the direction of Merck i.e., Merck and TAISEM go up and down completely randomly.
Pair Corralation between Merck and TAISEM
Considering the 90-day investment horizon Merck Company is expected to under-perform the TAISEM. In addition to that, Merck is 1.03 times more volatile than TAISEM 45 22 APR 52. It trades about -0.07 of its total potential returns per unit of risk. TAISEM 45 22 APR 52 is currently generating about 0.06 per unit of volatility. If you would invest 9,134 in TAISEM 45 22 APR 52 on November 30, 2024 and sell it today you would earn a total of 197.00 from holding TAISEM 45 22 APR 52 or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 48.78% |
| Values | Daily Returns |
Merck Company vs. TAISEM 45 22 APR 52
Performance |
| Timeline |
| Merck Company |
| TAISEM 45 22 |
Merck and TAISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and TAISEM
The main advantage of trading using opposite Merck and TAISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, TAISEM 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 TAISEM will offset losses from the drop in TAISEM's long position.The idea behind Merck Company and TAISEM 45 22 APR 52 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.| TAISEM vs. Freedom Bank of | TAISEM vs. PennantPark Floating Rate | TAISEM vs. Juniata Valley Financial | TAISEM vs. United Parks Resorts |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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