Correlation Between ASHTEAD and Merit Medical
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By analyzing existing cross correlation between ASHTEAD CAP INC and Merit Medical Systems, you can compare the effects of market volatilities on ASHTEAD 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 ASHTEAD with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASHTEAD and Merit Medical.
Diversification Opportunities for ASHTEAD and Merit Medical
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ASHTEAD and Merit is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ASHTEAD CAP INC 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 ASHTEAD 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 ASHTEAD CAP INC 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 ASHTEAD i.e., ASHTEAD and Merit Medical go up and down completely randomly.
Pair Corralation between ASHTEAD and Merit Medical
Assuming the 90 days trading horizon ASHTEAD CAP INC is expected to under-perform the Merit Medical. But the bond apears to be less risky and, when comparing its historical volatility, ASHTEAD CAP INC is 2.03 times less risky than Merit Medical. The bond trades about 0.0 of its potential returns per unit of risk. The Merit Medical Systems is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 6,961 in Merit Medical Systems on September 2, 2024 and sell it today you would earn a total of 3,429 from holding Merit Medical Systems or generate 49.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.84% |
| Values | Daily Returns |
ASHTEAD CAP INC vs. Merit Medical Systems
Performance |
| Timeline |
| ASHTEAD CAP INC |
| Merit Medical Systems |
ASHTEAD and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASHTEAD and Merit Medical
The main advantage of trading using opposite ASHTEAD and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASHTEAD 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.| ASHTEAD vs. China Tontine Wines | ASHTEAD vs. GAMCO Global Gold | ASHTEAD vs. Fidus Investment Corp | ASHTEAD vs. PennantPark Floating Rate |
| Merit Medical vs. Profound Medical Corp | Merit Medical vs. Si Bone | Merit Medical vs. Nevro Corp | Merit Medical vs. Orthopediatrics Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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