Correlation Between Stereotaxis and Merit Medical
Can any of the company-specific risk be diversified away by investing in both Stereotaxis and Merit Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Stereotaxis and Merit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stereotaxis and Merit Medical Systems, you can compare the effects of market volatilities on Stereotaxis 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 Stereotaxis with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stereotaxis and Merit Medical.
Diversification Opportunities for Stereotaxis and Merit Medical
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stereotaxis and Merit is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Stereotaxis 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 Stereotaxis 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 Stereotaxis 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 Stereotaxis i.e., Stereotaxis and Merit Medical go up and down completely randomly.
Pair Corralation between Stereotaxis and Merit Medical
Given the investment horizon of 90 days Stereotaxis is expected to under-perform the Merit Medical. In addition to that, Stereotaxis is 3.38 times more volatile than Merit Medical Systems. It trades about -0.06 of its total potential returns per unit of risk. Merit Medical Systems is currently generating about -0.04 per unit of volatility. If you would invest 7,513 in Merit Medical Systems on February 1, 2024 and sell it today you would lose (103.00) from holding Merit Medical Systems or give up 1.37% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Stereotaxis vs. Merit Medical Systems
Performance |
Timeline |
Stereotaxis |
Merit Medical Systems |
Stereotaxis and Merit Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stereotaxis and Merit Medical
The main advantage of trading using opposite Stereotaxis and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stereotaxis 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.Stereotaxis vs. Pfizer Inc | Stereotaxis vs. LSI Industries | Stereotaxis vs. Bull Profund Investor | Stereotaxis vs. Thornburg Limited Term |
Merit Medical vs. Pfizer Inc | Merit Medical vs. LSI Industries | Merit Medical vs. Bull Profund Investor | Merit Medical vs. Thornburg Limited Term |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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