Correlation Between Singapore Reinsurance and Merit Medical
Can any of the company-specific risk be diversified away by investing in both Singapore Reinsurance 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 Singapore Reinsurance and Merit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Reinsurance and Merit Medical Systems, you can compare the effects of market volatilities on Singapore Reinsurance 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 Singapore Reinsurance with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Reinsurance and Merit Medical.
Diversification Opportunities for Singapore Reinsurance and Merit Medical
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Singapore and Merit is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Reinsurance 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 Singapore Reinsurance 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 Singapore Reinsurance 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 Singapore Reinsurance i.e., Singapore Reinsurance and Merit Medical go up and down completely randomly.
Pair Corralation between Singapore Reinsurance and Merit Medical
Assuming the 90 days trading horizon Singapore Reinsurance is expected to generate 1.18 times less return on investment than Merit Medical. In addition to that, Singapore Reinsurance is 1.28 times more volatile than Merit Medical Systems. It trades about 0.18 of its total potential returns per unit of risk. Merit Medical Systems is currently generating about 0.27 per unit of volatility. If you would invest 8,600 in Merit Medical Systems on September 1, 2024 and sell it today you would earn a total of 1,150 from holding Merit Medical Systems or generate 13.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Reinsurance vs. Merit Medical Systems
Performance |
| Timeline |
| Singapore Reinsurance |
| Merit Medical Systems |
Singapore Reinsurance and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Reinsurance and Merit Medical
The main advantage of trading using opposite Singapore Reinsurance and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Reinsurance 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.| Singapore Reinsurance vs. SIVERS SEMICONDUCTORS AB | Singapore Reinsurance vs. Darden Restaurants | Singapore Reinsurance vs. Reliance Steel Aluminum | Singapore Reinsurance vs. Q2M Managementberatung AG |
| Merit Medical vs. Clean Energy Fuels | Merit Medical vs. Cardinal Health | Merit Medical vs. DiamondRock Hospitality | Merit Medical vs. Bumrungrad Hospital Public |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| 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 | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |