Correlation Between Merit Medical and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Merit Medical and Benchmark Electronics 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 Benchmark Electronics 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 Benchmark Electronics, you can compare the effects of market volatilities on Merit Medical and Benchmark Electronics 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 Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Benchmark Electronics.
Diversification Opportunities for Merit Medical and Benchmark Electronics
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Merit and Benchmark is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics 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 Benchmark Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Electronics has no effect on the direction of Merit Medical i.e., Merit Medical and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Merit Medical and Benchmark Electronics
Assuming the 90 days trading horizon Merit Medical Systems is expected to under-perform the Benchmark Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Merit Medical Systems is 1.1 times less risky than Benchmark Electronics. The stock trades about -0.03 of its potential returns per unit of risk. The Benchmark Electronics is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,285 in Benchmark Electronics on August 22, 2025 and sell it today you would earn a total of 315.00 from holding Benchmark Electronics or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merit Medical Systems vs. Benchmark Electronics
Performance |
| Timeline |
| Merit Medical Systems |
| Benchmark Electronics |
Merit Medical and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and Benchmark Electronics
The main advantage of trading using opposite Merit Medical and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Benchmark Electronics 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 Benchmark Electronics will offset losses from the drop in Benchmark Electronics' long position.| Merit Medical vs. REVO INSURANCE SPA | Merit Medical vs. GAMING FAC SA | Merit Medical vs. JSC Halyk bank | Merit Medical vs. United Insurance Holdings |
| Benchmark Electronics vs. Jabil Inc | Benchmark Electronics vs. Ibiden CoLtd | Benchmark Electronics vs. Plexus Corp | Benchmark Electronics vs. TTM Technologies |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |