Correlation Between Meridianlink and Karooooo
Can any of the company-specific risk be diversified away by investing in both Meridianlink and Karooooo 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 Meridianlink and Karooooo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meridianlink and Karooooo, you can compare the effects of market volatilities on Meridianlink and Karooooo 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 Meridianlink with a short position of Karooooo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meridianlink and Karooooo.
Diversification Opportunities for Meridianlink and Karooooo
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Meridianlink and Karooooo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Meridianlink and Karooooo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karooooo and Meridianlink 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 Meridianlink are associated (or correlated) with Karooooo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karooooo has no effect on the direction of Meridianlink i.e., Meridianlink and Karooooo go up and down completely randomly.
Pair Corralation between Meridianlink and Karooooo
Given the investment horizon of 90 days Meridianlink is expected to generate 0.05 times more return on investment than Karooooo. However, Meridianlink is 20.92 times less risky than Karooooo. It trades about 0.13 of its potential returns per unit of risk. Karooooo is currently generating about 0.0 per unit of risk. If you would invest 1,980 in Meridianlink on August 15, 2025 and sell it today you would earn a total of 21.00 from holding Meridianlink or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 81.25% |
| Values | Daily Returns |
Meridianlink vs. Karooooo
Performance |
| Timeline |
| Meridianlink |
Risk-Adjusted Performance
Fair
Weak | Strong |
| Karooooo |
Meridianlink and Karooooo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meridianlink and Karooooo
The main advantage of trading using opposite Meridianlink and Karooooo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meridianlink position performs unexpectedly, Karooooo 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 Karooooo will offset losses from the drop in Karooooo's long position.| Meridianlink vs. Pagerduty | Meridianlink vs. PAR Technology | Meridianlink vs. Alight Inc | Meridianlink vs. Kodiak AI, Common |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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