Correlation Analysis Between Merck and Twitter

This module allows you to analyze existing cross correlation between Merck Company and Twitter. You can compare the effects of market volatilities on Merck and Twitter 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 Twitter. See also your portfolio center. Please also check ongoing floating volatility patterns of Merck and Twitter.
Horizon     30 Days    Login   to change
Symbolsvs
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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 current stock price confusion, may contribute to short-horizon losses for the traders.
Twitter  
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Twitter are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, Twitter reported solid returns over the last few months and may actually be approaching a breakup point.

Merck and Twitter Volatility Contrast

 Predicted Return Density 
      Returns 

Merck Company Inc  vs.  Twitter Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Merck is expected to generate 164.1 times less return on investment than Twitter. But when comparing it to its historical volatility, Merck Company is 1.68 times less risky than Twitter. It trades about 0.0 of its potential returns per unit of risk. Twitter is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  3,558  in Twitter on August 22, 2019 and sell it today you would earn a total of  765.00  from holding Twitter or generate 21.5% return on investment over 30 days.

Pair Corralation between Merck and Twitter

0.18
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Merck and Twitter

Merck Company Inc diversification synergy

Average diversification

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