Correlation Between Merit Medical and Beyond Air
Can any of the company-specific risk be diversified away by investing in both Merit Medical and Beyond Air 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 Beyond Air 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 Beyond Air, you can compare the effects of market volatilities on Merit Medical and Beyond Air 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 Beyond Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Beyond Air.
Diversification Opportunities for Merit Medical and Beyond Air
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Merit and Beyond is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Beyond Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Air 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 Beyond Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Air has no effect on the direction of Merit Medical i.e., Merit Medical and Beyond Air go up and down completely randomly.
Pair Corralation between Merit Medical and Beyond Air
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 0.25 times more return on investment than Beyond Air. However, Merit Medical Systems is 4.04 times less risky than Beyond Air. It trades about -0.07 of its potential returns per unit of risk. Beyond Air is currently generating about -0.02 per unit of risk. If you would invest 10,468 in Merit Medical Systems on March 23, 2025 and sell it today you would lose (1,173) from holding Merit Medical Systems or give up 11.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merit Medical Systems vs. Beyond Air
Performance |
| Timeline |
| Merit Medical Systems |
| Beyond Air |
Merit Medical and Beyond Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and Beyond Air
The main advantage of trading using opposite Merit Medical and Beyond Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Beyond Air 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 Beyond Air will offset losses from the drop in Beyond Air'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 |
| Beyond Air vs. Lucid Diagnostics | Beyond Air vs. Clearpoint Neuro | Beyond Air vs. Avita Medical | Beyond Air vs. Sight Sciences |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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