Correlation Between Merit Medical and Parke Bancorp
Can any of the company-specific risk be diversified away by investing in both Merit Medical and Parke Bancorp 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 Parke Bancorp 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 Parke Bancorp, you can compare the effects of market volatilities on Merit Medical and Parke Bancorp 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 Parke Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Parke Bancorp.
Diversification Opportunities for Merit Medical and Parke Bancorp
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Merit and Parke is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Parke Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parke Bancorp 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 Parke Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parke Bancorp has no effect on the direction of Merit Medical i.e., Merit Medical and Parke Bancorp go up and down completely randomly.
Pair Corralation between Merit Medical and Parke Bancorp
Given the investment horizon of 90 days Merit Medical Systems is expected to under-perform the Parke Bancorp. In addition to that, Merit Medical is 1.11 times more volatile than Parke Bancorp. It trades about -0.05 of its total potential returns per unit of risk. Parke Bancorp is currently generating about 0.13 per unit of volatility. If you would invest 1,937 in Parke Bancorp on May 28, 2025 and sell it today you would earn a total of 258.00 from holding Parke Bancorp or generate 13.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merit Medical Systems vs. Parke Bancorp
Performance |
| Timeline |
| Merit Medical Systems |
| Parke Bancorp |
Merit Medical and Parke Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and Parke Bancorp
The main advantage of trading using opposite Merit Medical and Parke Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Parke Bancorp 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 Parke Bancorp will offset losses from the drop in Parke Bancorp's long position.| Merit Medical vs. Teleflex Incorporated | Merit Medical vs. The Cooper Companies, | Merit Medical vs. West Pharmaceutical Services | Merit Medical vs. ICU Medical |
| Parke Bancorp vs. Bankwell Financial Group | Parke Bancorp vs. Community West Bancshares | Parke Bancorp vs. Finward Bancorp | Parke Bancorp vs. Norwood Financial Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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