Correlation Between Merit Medical and 1mage Software

Can any of the company-specific risk be diversified away by investing in both Merit Medical and 1mage Software 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 1mage Software 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 1mage Software, you can compare the effects of market volatilities on Merit Medical and 1mage Software 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 1mage Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and 1mage Software.

Diversification Opportunities for Merit Medical and 1mage Software

0.0

Correlation Coefficient

Merit Medical  1mage Software

Pay attention - limited upside

The 3 months correlation between Merit and 1mage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and 1mage Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1mage Software 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 1mage Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1mage Software has no effect on the direction of Merit Medical i.e., Merit Medical and 1mage Software go up and down completely randomly.

Pair Corralation between Merit Medical and 1mage Software

If you would invest  0.02  in 1mage Software on September 6, 2025 and sell it today you would earn a total of  0.00  from holding 1mage Software or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Merit Medical Systems  vs.  1mage Software

Merit Medical Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days Merit Medical Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak 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.

1mage Software

Risk-Adjusted Performance

Weakest

Over the last 90 days 1mage Software has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, 1mage Software is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Merit Medical and 1mage Software

The main advantage of trading using opposite Merit Medical and 1mage Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, 1mage Software 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 1mage Software will offset losses from the drop in 1mage Software's long position.

The idea behind Merit Medical Systems and 1mage Software 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.