Correlation Between MRKGR and 00108WAF7
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By analyzing existing cross correlation between MRKGR 325 19 MAR 25 and AEP TEX INC, you can compare the effects of market volatilities on MRKGR and 00108WAF7 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 MRKGR with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRKGR and 00108WAF7.
Diversification Opportunities for MRKGR and 00108WAF7
Significant diversification
The 3 months correlation between MRKGR and 00108WAF7 is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding MRKGR 325 19 MAR 25 and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC and MRKGR 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 MRKGR 325 19 MAR 25 are associated (or correlated) with 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of MRKGR i.e., MRKGR and 00108WAF7 go up and down completely randomly.
Pair Corralation between MRKGR and 00108WAF7
Assuming the 90 days trading horizon MRKGR 325 19 MAR 25 is expected to under-perform the 00108WAF7. But the bond apears to be less risky and, when comparing its historical volatility, MRKGR 325 19 MAR 25 is 129.27 times less risky than 00108WAF7. The bond trades about -0.02 of its potential returns per unit of risk. The AEP TEX INC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7,482 in AEP TEX INC on November 3, 2024 and sell it today you would earn a total of 186.00 from holding AEP TEX INC or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 51.14% |
| Values | Daily Returns |
MRKGR 325 19 MAR 25 vs. AEP TEX INC
Performance |
| Timeline |
| MRKGR 325 19 |
| AEP TEX INC |
MRKGR and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRKGR and 00108WAF7
The main advantage of trading using opposite MRKGR and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRKGR position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| MRKGR vs. CVR Partners LP | MRKGR vs. The Coca Cola | MRKGR vs. NL Industries | MRKGR vs. Compania Cervecerias Unidas |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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