Correlation Between ETF Securities and Merck
Can any of the company-specific risk be diversified away by investing in both ETF Securities and Merck 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 ETF Securities and Merck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETF Securities and Merck Company, you can compare the effects of market volatilities on ETF Securities 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 ETF Securities with a short position of Merck. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETF Securities and Merck.
Diversification Opportunities for ETF Securities and Merck
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ETF and Merck is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ETF Securities and Merck Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merck Company and ETF Securities 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 ETF Securities 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 ETF Securities i.e., ETF Securities and Merck go up and down completely randomly.
Pair Corralation between ETF Securities and Merck
If you would invest 12,385 in Merck Company on January 20, 2024 and sell it today you would earn a total of 138.00 from holding Merck Company or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ETF Securities vs. Merck Company
Performance |
| Timeline |
| ETF Securities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Merck Company |
ETF Securities and Merck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETF Securities and Merck
The main advantage of trading using opposite ETF Securities and Merck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETF Securities 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.| ETF Securities vs. Vanguard Total Stock | ETF Securities vs. SPDR SP 500 | ETF Securities vs. iShares Core SP | ETF Securities vs. Vanguard Total Bond |
| Merck vs. Alkermes Plc | Merck vs. Ironwood Pharmaceuticals | Merck vs. Deciphera Pharmaceuticals LLC | Merck vs. Eagle Pharmaceuticals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |