Correlation Between CoreCard Corp and Meridianlink

Can any of the company-specific risk be diversified away by investing in both CoreCard Corp and Meridianlink 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 CoreCard Corp and Meridianlink into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CoreCard Corp and Meridianlink, you can compare the effects of market volatilities on CoreCard Corp and Meridianlink 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 CoreCard Corp with a short position of Meridianlink. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreCard Corp and Meridianlink.

Diversification Opportunities for CoreCard Corp and Meridianlink

-0.02

Correlation Coefficient

CoreCard Corp  Meridianlink

Good diversification

The 3 months correlation between CoreCard and Meridianlink is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CoreCard Corp and Meridianlink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridianlink and CoreCard Corp 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 CoreCard Corp are associated (or correlated) with Meridianlink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridianlink has no effect on the direction of CoreCard Corp i.e., CoreCard Corp and Meridianlink go up and down completely randomly.

Pair Corralation between CoreCard Corp and Meridianlink

Given the investment horizon of 90 days CoreCard Corp is expected to generate 5.44 times less return on investment than Meridianlink. But when comparing it to its historical volatility, CoreCard Corp is 1.23 times less risky than Meridianlink. It trades about 0.02 of its potential returns per unit of risk. Meridianlink is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,637  in Meridianlink on May 28, 2025 and sell it today you would earn a total of  351.00  from holding Meridianlink or generate 21.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CoreCard Corp  vs.  Meridianlink

CoreCard Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CoreCard Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, CoreCard Corp is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Meridianlink

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Meridianlink are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Meridianlink disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CoreCard Corp and Meridianlink

The main advantage of trading using opposite CoreCard Corp and Meridianlink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoreCard Corp position performs unexpectedly, Meridianlink 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 Meridianlink will offset losses from the drop in Meridianlink's long position.

The idea behind CoreCard Corp and Meridianlink pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.