Correlation Between Merit Medical and Bruker

Can any of the company-specific risk be diversified away by investing in both Merit Medical and Bruker 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 Bruker 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 Bruker, you can compare the effects of market volatilities on Merit Medical and Bruker 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 Bruker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Bruker.

Diversification Opportunities for Merit Medical and Bruker

-0.27

Correlation Coefficient

Merit Medical  Bruker

Very good diversification

The 3 months correlation between Merit and Bruker is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Bruker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bruker 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 Bruker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bruker has no effect on the direction of Merit Medical i.e., Merit Medical and Bruker go up and down completely randomly.

Pair Corralation between Merit Medical and Bruker

Given the investment horizon of 90 days Merit Medical Systems is expected to generate 0.5 times more return on investment than Bruker. However, Merit Medical Systems is 1.99 times less risky than Bruker. It trades about -0.08 of its potential returns per unit of risk. Bruker is currently generating about -0.05 per unit of risk. If you would invest  9,422  in Merit Medical Systems on May 7, 2025 and sell it today you would lose (889.00) from holding Merit Medical Systems or give up 9.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Merit Medical Systems  vs.  Bruker

Merit Medical Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Merit Medical Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Bruker

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bruker has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Merit Medical and Bruker

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

The idea behind Merit Medical Systems and Bruker 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.