Correlation Between APACHE and Merit Medical
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By analyzing existing cross correlation between APACHE P 425 and Merit Medical Systems, you can compare the effects of market volatilities on APACHE 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 APACHE with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of APACHE and Merit Medical.
Diversification Opportunities for APACHE and Merit Medical
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APACHE and Merit is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding APACHE P 425 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 APACHE 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 APACHE P 425 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 APACHE i.e., APACHE and Merit Medical go up and down completely randomly.
Pair Corralation between APACHE and Merit Medical
Assuming the 90 days trading horizon APACHE P 425 is expected to under-perform the Merit Medical. In addition to that, APACHE is 2.4 times more volatile than Merit Medical Systems. It trades about -0.07 of its total potential returns per unit of risk. Merit Medical Systems is currently generating about 0.28 per unit of volatility. If you would invest 9,531 in Merit Medical Systems on August 28, 2024 and sell it today you would earn a total of 869.00 from holding Merit Medical Systems or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
APACHE P 425 vs. Merit Medical Systems
Performance |
| Timeline |
| APACHE P 425 |
| Merit Medical Systems |
APACHE and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APACHE and Merit Medical
The main advantage of trading using opposite APACHE and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APACHE 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.| APACHE vs. Merit Medical Systems | APACHE vs. Tower One Wireless | APACHE vs. Constellation Brands Class | APACHE vs. Vita Coco |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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