Correlation Between Merit Medical and Otis Gold
Can any of the company-specific risk be diversified away by investing in both Merit Medical and Otis Gold 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 Merit Medical and Otis Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merit Medical Systems and Otis Gold Corp, you can compare the effects of market volatilities on Merit Medical and Otis Gold 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 Merit Medical with a short position of Otis Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Otis Gold.
Diversification Opportunities for Merit Medical and Otis Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Merit and Otis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Otis Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otis Gold Corp and Merit Medical 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 Merit Medical Systems are associated (or correlated) with Otis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otis Gold Corp has no effect on the direction of Merit Medical i.e., Merit Medical and Otis Gold go up and down completely randomly.
Pair Corralation between Merit Medical and Otis Gold
If you would invest 7,981 in Merit Medical Systems on February 23, 2024 and sell it today you would earn a total of 133.00 from holding Merit Medical Systems or generate 1.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Merit Medical Systems vs. Otis Gold Corp
Performance |
Timeline |
Merit Medical Systems |
Otis Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Merit Medical and Otis Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Merit Medical and Otis Gold
The main advantage of trading using opposite Merit Medical and Otis Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Otis Gold 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 Otis Gold will offset losses from the drop in Otis Gold's long position.Merit Medical vs. Teleflex Incorporated | Merit Medical vs. The Cooper Companies | Merit Medical vs. West Pharmaceutical Services | Merit Medical vs. ICU Medical |
Otis Gold vs. Datadog | Otis Gold vs. Park City Group | Otis Gold vs. Electrovaya Common Shares | Otis Gold vs. Hurco Companies |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |