Correlation Between Merck and Hashdex Nasdaq
Can any of the company-specific risk be diversified away by investing in both Merck and Hashdex Nasdaq 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 Merck and Hashdex Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merck Company and Hashdex Nasdaq Crypto, you can compare the effects of market volatilities on Merck and Hashdex Nasdaq 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 Merck with a short position of Hashdex Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and Hashdex Nasdaq.
Diversification Opportunities for Merck and Hashdex Nasdaq
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Merck and Hashdex is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and Hashdex Nasdaq Crypto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hashdex Nasdaq Crypto and Merck 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 Merck Company are associated (or correlated) with Hashdex Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hashdex Nasdaq Crypto has no effect on the direction of Merck i.e., Merck and Hashdex Nasdaq go up and down completely randomly.
Pair Corralation between Merck and Hashdex Nasdaq
Considering the 90-day investment horizon Merck Company is expected to generate 0.66 times more return on investment than Hashdex Nasdaq. However, Merck Company is 1.52 times less risky than Hashdex Nasdaq. It trades about 0.11 of its potential returns per unit of risk. Hashdex Nasdaq Crypto is currently generating about -0.15 per unit of risk. If you would invest 7,682 in Merck Company on March 25, 2025 and sell it today you would earn a total of 224.00 from holding Merck Company or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merck Company vs. Hashdex Nasdaq Crypto
Performance |
| Timeline |
| Merck Company |
| Hashdex Nasdaq Crypto |
Merck and Hashdex Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and Hashdex Nasdaq
The main advantage of trading using opposite Merck and Hashdex Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, Hashdex Nasdaq 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 Hashdex Nasdaq will offset losses from the drop in Hashdex Nasdaq's long position.| Merck vs. Thrivent High Yield | Merck vs. First Guaranty Bancshares | Merck vs. The Ensign Group | Merck vs. Griffon |
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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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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