Correlation Between Merck and UniCredit
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By analyzing existing cross correlation between Merck Company and UniCredit 5459 percent, you can compare the effects of market volatilities on Merck and UniCredit 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 UniCredit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and UniCredit.
Diversification Opportunities for Merck and UniCredit
Weak diversification
The 3 months correlation between Merck and UniCredit is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and UniCredit 5459 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UniCredit 5459 percent 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 UniCredit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UniCredit 5459 percent has no effect on the direction of Merck i.e., Merck and UniCredit go up and down completely randomly.
Pair Corralation between Merck and UniCredit
Considering the 90-day investment horizon Merck Company is expected to generate 0.49 times more return on investment than UniCredit. However, Merck Company is 2.06 times less risky than UniCredit. It trades about -0.1 of its potential returns per unit of risk. UniCredit 5459 percent is currently generating about -0.22 per unit of risk. If you would invest 10,423 in Merck Company on August 28, 2024 and sell it today you would lose (307.00) from holding Merck Company or give up 2.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Merck Company vs. UniCredit 5459 percent
Performance |
| Timeline |
| Merck Company |
| UniCredit 5459 percent |
Merck and UniCredit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and UniCredit
The main advantage of trading using opposite Merck and UniCredit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, UniCredit 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 UniCredit will offset losses from the drop in UniCredit's long position.| Merck vs. Capricor Therapeutics | Merck vs. Soleno Therapeutics | Merck vs. Bio Path Holdings | Merck vs. Moleculin Biotech |
| UniCredit vs. Videolocity International | UniCredit vs. SBM Offshore NV | UniCredit vs. Compania Cervecerias Unidas | UniCredit vs. Scandinavian Tobacco 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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