Correlation Between Altaba and Merck
Can any of the company-specific risk be diversified away by investing in both Altaba and Merck 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 Altaba and Merck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altaba Inc and Merck Company, you can compare the effects of market volatilities on Altaba and Merck 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 Altaba with a short position of Merck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altaba and Merck.
Diversification Opportunities for Altaba and Merck
Pay attention - limited upside
The 3 months correlation between Altaba and Merck is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altaba Inc and Merck Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merck Company and Altaba 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 Altaba Inc are associated (or correlated) with Merck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merck Company has no effect on the direction of Altaba i.e., Altaba and Merck go up and down completely randomly.
Pair Corralation between Altaba and Merck
If you would invest 12,531 in Merck Company on January 25, 2024 and sell it today you would earn a total of 169.00 from holding Merck Company or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Altaba Inc vs. Merck Company
Performance |
| Timeline |
| Altaba Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Merck Company |
Altaba and Merck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altaba and Merck
The main advantage of trading using opposite Altaba and Merck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altaba position performs unexpectedly, Merck 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 Merck will offset losses from the drop in Merck's long position.| Altaba vs. HF Sinclair Corp | Altaba vs. Pearson PLC ADR | Altaba vs. Pentair PLC | Altaba vs. Peoples Educational Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities |