Correlation Between Merit Medical and Maquia Capital

Can any of the company-specific risk be diversified away by investing in both Merit Medical and Maquia Capital 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 Maquia Capital 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 Maquia Capital Acquisition, you can compare the effects of market volatilities on Merit Medical and Maquia Capital 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 Maquia Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Maquia Capital.

Diversification Opportunities for Merit Medical and Maquia Capital

0.0

Correlation Coefficient

Merit Medical  Maquia Capital

Pay attention - limited upside

The 3 months correlation between Merit and Maquia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Maquia Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maquia Capital Acqui 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 Maquia Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maquia Capital Acqui has no effect on the direction of Merit Medical i.e., Merit Medical and Maquia Capital go up and down completely randomly.

Pair Corralation between Merit Medical and Maquia Capital

If you would invest  9,658  in Merit Medical Systems on December 5, 2024 and sell it today you would earn a total of  827.00  from holding Merit Medical Systems or generate 8.56% 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.  Maquia Capital Acquisition

Merit Medical Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Merit Medical Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Merit Medical is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Maquia Capital Acqui

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maquia Capital Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Maquia Capital is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Merit Medical and Maquia Capital

The main advantage of trading using opposite Merit Medical and Maquia Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Maquia Capital 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 Maquia Capital will offset losses from the drop in Maquia Capital's long position.

The idea behind Merit Medical Systems and Maquia Capital Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.