Correlation Analysis Between Allergan Plc and Merck

This module allows you to analyze existing cross correlation between Allergan Plc and Merck Company. You can compare the effects of market volatilities on Allergan Plc 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 Allergan Plc with a short position of Merck. See also your portfolio center. Please also check ongoing floating volatility patterns of Allergan Plc and Merck.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Allergan Plc  
2727

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Allergan Plc are ranked lower than 27 (%) of all global equities and portfolios over the last 30 days. Allthough quite conflicting forward indicators, Allergan Plc may actually be approaching a critical reversion point that can send shares even higher in January 2020.
Merck  
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Merck Company are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Regardless of fairly conflicting technical and fundamental indicators, Merck may actually be approaching a critical reversion point that can send shares even higher in January 2020.

Allergan Plc and Merck Volatility Contrast

 Predicted Return Density 
      Returns 

Allergan Plc  vs.  Merck Company Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Allergan Plc is expected to generate 0.43 times more return on investment than Merck. However, Allergan Plc is 2.34 times less risky than Merck. It trades about 0.41 of its potential returns per unit of risk. Merck Company is currently generating about 0.12 per unit of risk. If you would invest  16,556  in Allergan Plc on November 15, 2019 and sell it today you would earn a total of  2,278  from holding Allergan Plc or generate 13.76% return on investment over 30 days.

Pair Corralation between Allergan Plc and Merck

0.7
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Allergan Plc and Merck

Allergan Plc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Allergan Plc and Merck Company Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Merck and Allergan Plc 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 Allergan Plc 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 has no effect on the direction of Allergan Plc i.e. Allergan Plc and Merck go up and down completely randomly.
See also your portfolio center. Please also try Pair Correlation module to compare performance and examine historical correlation between any two equity instruments.


 
Search macroaxis.com