Correlation Between Merit Medical and Securitas
Can any of the company-specific risk be diversified away by investing in both Merit Medical and Securitas 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 Securitas 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 Securitas AB, you can compare the effects of market volatilities on Merit Medical and Securitas 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 Securitas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Securitas.
Diversification Opportunities for Merit Medical and Securitas
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Merit and Securitas is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Securitas AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Securitas AB 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 Securitas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Securitas AB has no effect on the direction of Merit Medical i.e., Merit Medical and Securitas go up and down completely randomly.
Pair Corralation between Merit Medical and Securitas
If you would invest 1,285 in Securitas AB on September 26, 2024 and sell it today you would earn a total of 0.00 from holding Securitas AB or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 4.76% |
Values | Daily Returns |
Merit Medical Systems vs. Securitas AB
Performance |
Timeline |
Merit Medical Systems |
Securitas AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Merit Medical and Securitas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Merit Medical and Securitas
The main advantage of trading using opposite Merit Medical and Securitas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Securitas 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 Securitas will offset losses from the drop in Securitas' long position.Merit Medical vs. Teleflex Incorporated | Merit Medical vs. The Cooper Companies, | Merit Medical vs. West Pharmaceutical Services | Merit Medical vs. ICU Medical |
Securitas vs. Tradeweb Markets | Securitas vs. Sea | Securitas vs. Valneva SE ADR | Securitas vs. Acm Research |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |