Merck Correlations

MRK Stock

EUR 141.30 1.05 0.74%

The current 90-days correlation between Merck Company and COMMERCIAL VEHICLE is 0.06 (i.e., Significant diversification). The correlation of Merck is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Merck Correlation With Market

Average diversification

The correlation between Merck Company and DJI is 0.19 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Merck could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Merck when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Merck - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Merck Company to buy it.

Moving together with Merck Stock

0.82	SSU	Samsung Electronics	Pair Corr
0.72	SSUN	Samsung Electronics	Pair Corr
0.73	SSUN	Samsung Electronics	Pair Corr
0.81	SSU	Samsung Electronics	Pair Corr
0.71	ASJA	ASTRA INTERNATIONAL	Pair Corr
0.64	BYRA	PT Bank Rakyat	Pair Corr
0.62	TCID	Telkom Indonesia Tbk	Pair Corr

Moving against Merck Stock

0.84	AMZ	Amazon Inc	Pair Corr
0.74	APC	Apple Inc	Pair Corr
0.74	APC	Apple Inc	Pair Corr
0.74	APC	Apple Inc	Pair Corr
0.72	APC	Apple Inc	Pair Corr
0.66	MSF	Microsoft	Pair Corr
0.64	MSF	Microsoft	Pair Corr
0.64	MSF	Microsoft	Pair Corr
0.63	MSF	Microsoft	Pair Corr
0.61	MSF	Microsoft	Pair Corr
0.42	E908	Lyxor 1	Pair Corr
0.32	DBPE	Xtrackers LevDAX	Pair Corr

Related Correlations Analysis

	FDU	3GH	9TG	4GF	7FZ	2T9A	I9V	9IRA
FDU		-0.01	-0.76	-0.04	0.62	-0.88	-0.68	0.73	FDU
3GH	-0.01		0.14	0.32	-0.21	0.05	-0.05	0.01	3GH
9TG	-0.76	0.14		0.11	-0.59	0.86	0.69	-0.77	9TG
4GF	-0.04	0.32	0.11		0.19	0.05	0.03	0.2	4GF
7FZ	0.62	-0.21	-0.59	0.19		-0.71	-0.46	0.63	7FZ
2T9A	-0.88	0.05	0.86	0.05	-0.71		0.62	-0.77	2T9A
I9V	-0.68	-0.05	0.69	0.03	-0.46	0.62		-0.77	I9V
9IRA	0.73	0.01	-0.77	0.2	0.63	-0.77	-0.77		9IRA
	FDU	3GH	9TG	4GF	7FZ	2T9A	I9V	9IRA

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

2T9A	+ 0.86	9TG
9IRA	+ 0.73	FDU
I9V	+ 0.69	9TG
9IRA	+ 0.63	7FZ
7FZ	+ 0.62	FDU
I9V	+ 0.62	2T9A

High negative correlations

2T9A	- 0.88	FDU
9IRA	- 0.77	I9V
9IRA	- 0.77	2T9A
9IRA	- 0.77	9TG
9TG	- 0.76	FDU
2T9A	- 0.71	7FZ

Risk-Adjusted Indicators

There is a big difference between Merck Stock performing well and Merck Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Merck's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
FDU	2.66	(0.51)	0.00	(0.34)	0.00	0.00	5.07	(5.23)	29.98
3GH	1.29	(0.08)	0.00	(3.98)	0.00	0.00	2.72	(2.91)	11.33
9TG	1.20	(0.05)	(0.06)	0.00	1.59	(1.33)	3.17	(2.12)	9.46
4GF	1.95	0.09	(0.01)	(0.66)	1.83	(2.89)	5.66	(3.57)	14.39
7FZ	1.52	(0.10)	0.00	(0.53)	0.00	0.00	3.36	(2.87)	7.92
2T9A	1.45	0.54	0.18	(1.65)	1.24	(1.95)	4.52	(2.44)	15.43
I9V	1.86	0.12	0.01	(5.19)	2.05	(2.25)	4.26	(3.42)	11.37
9IRA	2.76	(0.07)	(0.02)	0.04	3.12	(3.71)	8.09	(4.62)	23.58

Be your own money manager

Our tools can tell you how much better you can do entering a position in Merck without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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