Correlation Between NanoString Technologies and Merit Medical
Can any of the company-specific risk be diversified away by investing in both NanoString Technologies and Merit Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NanoString Technologies and Merit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NanoString Technologies and Merit Medical Systems, you can compare the effects of market volatilities on NanoString Technologies and Merit Medical 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 NanoString Technologies with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of NanoString Technologies and Merit Medical.
Diversification Opportunities for NanoString Technologies and Merit Medical
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NanoString and Merit is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding NanoString Technologies and Merit Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merit Medical Systems and NanoString Technologies 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 NanoString Technologies are associated (or correlated) with Merit Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merit Medical Systems has no effect on the direction of NanoString Technologies i.e., NanoString Technologies and Merit Medical go up and down completely randomly.
Pair Corralation between NanoString Technologies and Merit Medical
If you would invest 9,531 in Merit Medical Systems on August 28, 2024 and sell it today you would earn a total of 961.00 from holding Merit Medical Systems or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
NanoString Technologies vs. Merit Medical Systems
Performance |
| Timeline |
| NanoString Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Merit Medical Systems |
NanoString Technologies and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NanoString Technologies and Merit Medical
The main advantage of trading using opposite NanoString Technologies and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NanoString Technologies position performs unexpectedly, Merit Medical 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 Merit Medical will offset losses from the drop in Merit Medical's long position.| NanoString Technologies vs. Veracyte | NanoString Technologies vs. Syros Pharmaceuticals | NanoString Technologies vs. Seres Therapeutics | NanoString Technologies vs. Iovance Biotherapeutics |
| Merit Medical vs. Heartbeam | Merit Medical vs. EUDA Health Holdings | Merit Medical vs. Nutex Health | Merit Medical vs. Healthcare Triangle |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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