Correlation Between MERCK and Old Republic
Specify exactly 2 symbols:
By analyzing existing cross correlation between MERCK INC and Old Republic International, you can compare the effects of market volatilities on MERCK and Old Republic 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 MERCK with a short position of Old Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of MERCK and Old Republic.
Diversification Opportunities for MERCK and Old Republic
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MERCK and Old is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding MERCK INC and Old Republic International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Republic Interna and MERCK 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 MERCK INC are associated (or correlated) with Old Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Republic Interna has no effect on the direction of MERCK i.e., MERCK and Old Republic go up and down completely randomly.
Pair Corralation between MERCK and Old Republic
Assuming the 90 days trading horizon MERCK is expected to generate 64.3 times less return on investment than Old Republic. But when comparing it to its historical volatility, MERCK INC is 2.53 times less risky than Old Republic. It trades about 0.0 of its potential returns per unit of risk. Old Republic International is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,846 in Old Republic International on September 4, 2024 and sell it today you would earn a total of 997.00 from holding Old Republic International or generate 35.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
MERCK INC vs. Old Republic International
Performance |
| Timeline |
| MERCK INC |
| Old Republic Interna |
MERCK and Old Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MERCK and Old Republic
The main advantage of trading using opposite MERCK and Old Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MERCK position performs unexpectedly, Old Republic 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 Old Republic will offset losses from the drop in Old Republic's long position.| MERCK vs. Old Republic International | MERCK vs. Trupanion | MERCK vs. Teleflex Incorporated | MERCK vs. Employers Holdings |
| Old Republic vs. Progressive Corp | Old Republic vs. Cincinnati Financial | Old Republic vs. W R Berkley | Old Republic vs. The Allstate |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |