Correlation Analysis Between Merck and Astrazeneca PLC

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

Merck  
00

Risk-Adjusted Performance

Over the last 30 days Merck Company has generated negative risk-adjusted returns adding no value to investors with long positions. Regardless of fairly consistent technical and fundamental indicators, Merck is not utilizing all of its potentials. The ongoing stock price confusion, may contribute to short-horizon losses for the traders.
Astrazeneca PLC  
55

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Astrazeneca PLC are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Allthough quite persistent forward indicators, Astrazeneca PLC is not utilizing all of its potentials. The ongoing stock price mess, may contribute to short term losses for the partners.

Merck and Astrazeneca PLC Volatility Contrast

 Predicted Return Density 
      Returns 

Merck Company Inc  vs.  Astrazeneca PLC

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Merck is expected to generate 9.98 times less return on investment than Astrazeneca PLC. In addition to that, Merck is 1.1 times more volatile than Astrazeneca PLC. It trades about 0.01 of its total potential returns per unit of risk. Astrazeneca PLC is currently generating about 0.08 per unit of volatility. If you would invest  4,223  in Astrazeneca PLC on September 23, 2019 and sell it today you would earn a total of  242.00  from holding Astrazeneca PLC or generate 5.73% return on investment over 30 days.

Pair Corralation between Merck and Astrazeneca PLC

0.71
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Merck and Astrazeneca PLC

Merck Company Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Merck Company Inc and Astrazeneca PLC in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Astrazeneca PLC 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 Astrazeneca PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astrazeneca PLC has no effect on the direction of Merck i.e. Merck and Astrazeneca PLC go up and down completely randomly.
See also your portfolio center. Please also try Piotroski F Score module to get piotroski f score based on binary analysis strategy of nine different fundamentals.


 
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