Correlation Between 988498AK7 and Merck
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By analyzing existing cross correlation between Yum Brands 535 and Merck Company, you can compare the effects of market volatilities on 988498AK7 and Merck 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 988498AK7 with a short position of Merck. Check out your portfolio center. Please also check ongoing floating volatility patterns of 988498AK7 and Merck.
Diversification Opportunities for 988498AK7 and Merck
Average diversification
The 3 months correlation between 988498AK7 and Merck is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Yum Brands 535 and Merck Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merck Company and 988498AK7 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 Yum Brands 535 are associated (or correlated) with Merck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merck Company has no effect on the direction of 988498AK7 i.e., 988498AK7 and Merck go up and down completely randomly.
Pair Corralation between 988498AK7 and Merck
Assuming the 90 days trading horizon Yum Brands 535 is expected to generate 73.1 times more return on investment than Merck. However, 988498AK7 is 73.1 times more volatile than Merck Company. It trades about 0.08 of its potential returns per unit of risk. Merck Company is currently generating about 0.0 per unit of risk. If you would invest 9,150 in Yum Brands 535 on September 12, 2024 and sell it today you would lose (686.00) from holding Yum Brands 535 or give up 7.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 67.9% |
| Values | Daily Returns |
Yum Brands 535 vs. Merck Company
Performance |
| Timeline |
| Yum Brands 535 |
| Merck Company |
988498AK7 and Merck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 988498AK7 and Merck
The main advantage of trading using opposite 988498AK7 and Merck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 988498AK7 position performs unexpectedly, Merck 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 Merck will offset losses from the drop in Merck's long position.| 988498AK7 vs. AEP TEX INC | 988498AK7 vs. US BANK NATIONAL | 988498AK7 vs. Applied Blockchain | 988498AK7 vs. BigBearai Holdings |
| Merck vs. Victory Integrity Smallmid Cap | Merck vs. Hilton Worldwide Holdings | Merck vs. NVIDIA | Merck vs. JPMorgan Chase Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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