Correlation Between Merit Medical and Tenon Medical,

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

Diversification Opportunities for Merit Medical and Tenon Medical,

0.32

Correlation Coefficient

Merit Medical  Tenon Medical,

Weak diversification

The 3 months correlation between Merit and Tenon is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Tenon Medical, Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenon Medical, Warrant 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 Tenon Medical,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenon Medical, Warrant has no effect on the direction of Merit Medical i.e., Merit Medical and Tenon Medical, go up and down completely randomly.

Pair Corralation between Merit Medical and Tenon Medical,

Given the investment horizon of 90 days Merit Medical is expected to generate 14.02 times less return on investment than Tenon Medical,. But when comparing it to its historical volatility, Merit Medical Systems is 12.6 times less risky than Tenon Medical,. It trades about 0.05 of its potential returns per unit of risk. Tenon Medical, Warrant is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1.70  in Tenon Medical, Warrant on December 19, 2024 and sell it today you would lose (0.43) from holding Tenon Medical, Warrant or give up 25.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	65.0%
Values	Daily Returns

Merit Medical Systems  vs.  Tenon Medical, Warrant

Merit Medical Systems

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Merit Medical Systems are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. 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.

Tenon Medical, Warrant

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tenon Medical, Warrant are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Tenon Medical, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Merit Medical and Tenon Medical,

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

The idea behind Merit Medical Systems and Tenon Medical, Warrant 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.