Correlation Between Merchants Financial and VNV Global
Can any of the company-specific risk be diversified away by investing in both Merchants Financial and VNV Global 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 Merchants Financial and VNV Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merchants Financial Group and VNV Global AB, you can compare the effects of market volatilities on Merchants Financial and VNV Global 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 Merchants Financial with a short position of VNV Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merchants Financial and VNV Global.
Diversification Opportunities for Merchants Financial and VNV Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Merchants and VNV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merchants Financial Group and VNV Global AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VNV Global AB and Merchants Financial 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 Merchants Financial Group are associated (or correlated) with VNV Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VNV Global AB has no effect on the direction of Merchants Financial i.e., Merchants Financial and VNV Global go up and down completely randomly.
Pair Corralation between Merchants Financial and VNV Global
If you would invest 2,500 in Merchants Financial Group on August 14, 2025 and sell it today you would earn a total of 305.00 from holding Merchants Financial Group or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Merchants Financial Group vs. VNV Global AB
Performance |
| Timeline |
| Merchants Financial |
| VNV Global AB |
Merchants Financial and VNV Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merchants Financial and VNV Global
The main advantage of trading using opposite Merchants Financial and VNV Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merchants Financial position performs unexpectedly, VNV Global 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 VNV Global will offset losses from the drop in VNV Global's long position.| Merchants Financial vs. Thrivent High Yield | Merchants Financial vs. Morningstar Unconstrained Allocation | Merchants Financial vs. Cherry Hill Mortgage | Merchants Financial vs. The Hartford Healthcare |
| VNV Global vs. VEF AB | VNV Global vs. Dividend Growth Split | VNV Global vs. Impax Asset Management | VNV Global vs. Urbana |
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 Stocks Directory module to find actively traded stocks across global markets.
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