Correlation Between ENABLE and Merit Medical
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By analyzing existing cross correlation between ENABLE MIDSTREAM PARTNERS and Merit Medical Systems, you can compare the effects of market volatilities on ENABLE 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 ENABLE with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENABLE and Merit Medical.
Diversification Opportunities for ENABLE and Merit Medical
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ENABLE and Merit is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding ENABLE MIDSTREAM PARTNERS 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 ENABLE 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 ENABLE MIDSTREAM PARTNERS 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 ENABLE i.e., ENABLE and Merit Medical go up and down completely randomly.
Pair Corralation between ENABLE and Merit Medical
Assuming the 90 days trading horizon ENABLE is expected to generate 14.83 times less return on investment than Merit Medical. But when comparing it to its historical volatility, ENABLE MIDSTREAM PARTNERS is 3.25 times less risky than Merit Medical. It trades about 0.03 of its potential returns per unit of risk. 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 | 99.6% |
| Values | Daily Returns |
ENABLE MIDSTREAM PARTNERS vs. Merit Medical Systems
Performance |
| Timeline |
| ENABLE MIDSTREAM PARTNERS |
| Merit Medical Systems |
ENABLE and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENABLE and Merit Medical
The main advantage of trading using opposite ENABLE and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENABLE 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.| ENABLE vs. Grupo Simec SAB | ENABLE vs. Molson Coors Brewing | ENABLE vs. RLX Technology | ENABLE vs. Sanyo Special Steel |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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