Correlation Analysis Between Merck and Altaba

This module allows you to analyze existing cross correlation between Merck Company and Altaba. You can compare the effects of market volatilities on Merck and Altaba 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 Altaba. See also your portfolio center. Please also check ongoing floating volatility patterns of Merck and Altaba.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Merck  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Merck Company are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Regardless of fairly consistent technical and fundamental indicators, Merck is not utilizing all of its potentials. The existing stock price confusion, may contribute to short-horizon losses for the traders.
Altaba  
00

Risk-Adjusted Performance

Over the last 30 days Altaba has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in November 2019. The current disturbance may also be a sign of long term up-swing for the company investors.

Merck and Altaba Volatility Contrast

 Predicted Return Density 
      Returns 

Merck Company Inc  vs.  Altaba Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Merck Company is expected to generate 0.13 times more return on investment than Altaba. However, Merck Company is 7.68 times less risky than Altaba. It trades about 0.06 of its potential returns per unit of risk. Altaba is currently generating about -0.13 per unit of risk. If you would invest  8,121  in Merck Company on September 18, 2019 and sell it today you would earn a total of  330.00  from holding Merck Company or generate 4.06% return on investment over 30 days.

Pair Corralation between Merck and Altaba

0.05
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy96.88%
ValuesDaily Returns

Diversification Opportunities for Merck and Altaba

Merck Company Inc diversification synergy

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding Merck Company Inc and Altaba Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Altaba 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 Company are associated (or correlated) with Altaba. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altaba has no effect on the direction of Merck i.e. Merck and Altaba go up and down completely randomly.
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