Correlation Between Merck and KANSAS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Merck Company and KANSAS CITY SOUTHN, you can compare the effects of market volatilities on Merck and KANSAS 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 KANSAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and KANSAS.
Diversification Opportunities for Merck and KANSAS
Pay attention - limited upside
The 3 months correlation between Merck and KANSAS is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and KANSAS CITY SOUTHN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KANSAS CITY SOUTHN 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 KANSAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KANSAS CITY SOUTHN has no effect on the direction of Merck i.e., Merck and KANSAS go up and down completely randomly.
Pair Corralation between Merck and KANSAS
Considering the 90-day investment horizon Merck Company is expected to under-perform the KANSAS. In addition to that, Merck is 1.8 times more volatile than KANSAS CITY SOUTHN. It trades about -0.12 of its total potential returns per unit of risk. KANSAS CITY SOUTHN is currently generating about -0.13 per unit of volatility. If you would invest 9,837 in KANSAS CITY SOUTHN on September 11, 2024 and sell it today you would lose (121.00) from holding KANSAS CITY SOUTHN or give up 1.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 22.22% |
Values | Daily Returns |
Merck Company vs. KANSAS CITY SOUTHN
Performance |
Timeline |
Merck Company |
KANSAS CITY SOUTHN |
Merck and KANSAS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Merck and KANSAS
The main advantage of trading using opposite Merck and KANSAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, KANSAS 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 KANSAS will offset losses from the drop in KANSAS's long position.Merck vs. Emergent Biosolutions | Merck vs. Neurocrine Biosciences | Merck vs. Teva Pharma Industries | Merck vs. Haleon plc |
KANSAS vs. KVH Industries | KANSAS vs. Zhihu Inc ADR | KANSAS vs. Village Super Market | KANSAS vs. National CineMedia |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
CEOs Directory Screen CEOs from public companies around the world | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |