Correlation Between MQGAU and Merit Medical
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By analyzing existing cross correlation between MQGAU 2871 14 JAN 33 and Merit Medical Systems, you can compare the effects of market volatilities on MQGAU 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 MQGAU with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of MQGAU and Merit Medical.
Diversification Opportunities for MQGAU and Merit Medical
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MQGAU and Merit is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding MQGAU 2871 14 JAN 33 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 MQGAU 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 MQGAU 2871 14 JAN 33 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 MQGAU i.e., MQGAU and Merit Medical go up and down completely randomly.
Pair Corralation between MQGAU and Merit Medical
Assuming the 90 days trading horizon MQGAU 2871 14 JAN 33 is expected to under-perform the Merit Medical. But the bond apears to be less risky and, when comparing its historical volatility, MQGAU 2871 14 JAN 33 is 1.09 times less risky than Merit Medical. The bond trades about -0.02 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 6,878 in Merit Medical Systems on September 4, 2024 and sell it today you would earn a total of 3,604 from holding Merit Medical Systems or generate 52.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 59.11% |
| Values | Daily Returns |
MQGAU 2871 14 JAN 33 vs. Merit Medical Systems
Performance |
| Timeline |
| MQGAU 2871 14 |
| Merit Medical Systems |
MQGAU and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MQGAU and Merit Medical
The main advantage of trading using opposite MQGAU and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MQGAU 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.The idea behind MQGAU 2871 14 JAN 33 and Merit Medical Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Merit Medical vs. Baxter International | Merit Medical vs. West Pharmaceutical Services | Merit Medical vs. ResMed Inc | Merit Medical vs. The Cooper Companies, |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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