Correlation Between STGEORGE MINING and Merit Medical
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING 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 STGEORGE MINING and Merit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and Merit Medical Systems, you can compare the effects of market volatilities on STGEORGE MINING 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 STGEORGE MINING with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and Merit Medical.
Diversification Opportunities for STGEORGE MINING and Merit Medical
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between STGEORGE and Merit is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD 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 STGEORGE MINING 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 STGEORGE MINING LTD 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 STGEORGE MINING i.e., STGEORGE MINING and Merit Medical go up and down completely randomly.
Pair Corralation between STGEORGE MINING and Merit Medical
Assuming the 90 days horizon STGEORGE MINING LTD is expected to under-perform the Merit Medical. In addition to that, STGEORGE MINING is 8.63 times more volatile than Merit Medical Systems. It trades about -0.1 of its total potential returns per unit of risk. Merit Medical Systems is currently generating about -0.14 per unit of volatility. If you would invest 9,750 in Merit Medical Systems on December 24, 2024 and sell it today you would lose (550.00) from holding Merit Medical Systems or give up 5.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. Merit Medical Systems
Performance |
| Timeline |
| STGEORGE MINING LTD |
| Merit Medical Systems |
STGEORGE MINING and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and Merit Medical
The main advantage of trading using opposite STGEORGE MINING and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING 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.| STGEORGE MINING vs. Molina Healthcare | STGEORGE MINING vs. Neinor Homes SA | STGEORGE MINING vs. EPSILON HEALTHCARE LTD | STGEORGE MINING vs. BOVIS HOMES GROUP |
| Merit Medical vs. Tower Semiconductor | Merit Medical vs. OAKTRSPECLENDNEW | Merit Medical vs. Cincinnati Financial Corp | Merit Medical vs. Erste Group Bank |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |