Correlation Between Merchants National and Verisk Analytics
Can any of the company-specific risk be diversified away by investing in both Merchants National and Verisk Analytics 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 National and Verisk Analytics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merchants National Properties and Verisk Analytics, you can compare the effects of market volatilities on Merchants National and Verisk Analytics 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 National with a short position of Verisk Analytics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merchants National and Verisk Analytics.
Diversification Opportunities for Merchants National and Verisk Analytics
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Merchants and Verisk is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Merchants National Properties and Verisk Analytics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verisk Analytics and Merchants National 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 National Properties are associated (or correlated) with Verisk Analytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verisk Analytics has no effect on the direction of Merchants National i.e., Merchants National and Verisk Analytics go up and down completely randomly.
Pair Corralation between Merchants National and Verisk Analytics
Given the investment horizon of 90 days Merchants National Properties is expected to generate 0.68 times more return on investment than Verisk Analytics. However, Merchants National Properties is 1.47 times less risky than Verisk Analytics. It trades about -0.01 of its potential returns per unit of risk. Verisk Analytics is currently generating about -0.12 per unit of risk. If you would invest 190,000 in Merchants National Properties on September 2, 2025 and sell it today you would lose (3,240) from holding Merchants National Properties or give up 1.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merchants National Properties vs. Verisk Analytics
Performance |
| Timeline |
| Merchants National |
| Verisk Analytics |
Merchants National and Verisk Analytics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merchants National and Verisk Analytics
The main advantage of trading using opposite Merchants National and Verisk Analytics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merchants National position performs unexpectedly, Verisk Analytics 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 Verisk Analytics will offset losses from the drop in Verisk Analytics' long position.| Merchants National vs. Richardson Electronics | Merchants National vs. Nexstar Broadcasting Group | Merchants National vs. Sinclair Broadcast Group | Merchants National vs. American Transportation Holdings |
| Verisk Analytics vs. Roadrunner Transportation Systems | Verisk Analytics vs. Centaur Media Plc | Verisk Analytics vs. National CineMedia | Verisk Analytics vs. Canlan Ice Sports |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |