Correlation Between Atreca and Mersana Therapeutics
Can any of the company-specific risk be diversified away by investing in both Atreca and Mersana Therapeutics 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 Atreca and Mersana Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atreca Inc and Mersana Therapeutics, you can compare the effects of market volatilities on Atreca and Mersana Therapeutics 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 Atreca with a short position of Mersana Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atreca and Mersana Therapeutics.
Diversification Opportunities for Atreca and Mersana Therapeutics
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Atreca and Mersana is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Atreca Inc and Mersana Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mersana Therapeutics and Atreca 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 Atreca Inc are associated (or correlated) with Mersana Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mersana Therapeutics has no effect on the direction of Atreca i.e., Atreca and Mersana Therapeutics go up and down completely randomly.
Pair Corralation between Atreca and Mersana Therapeutics
Given the investment horizon of 90 days Atreca Inc is expected to generate 0.89 times more return on investment than Mersana Therapeutics. However, Atreca Inc is 1.12 times less risky than Mersana Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Mersana Therapeutics is currently generating about 0.02 per unit of risk. If you would invest 97.00 in Atreca Inc on September 2, 2024 and sell it today you would earn a total of 7.00 from holding Atreca Inc or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 31.05% |
| Values | Daily Returns |
Atreca Inc vs. Mersana Therapeutics
Performance |
| Timeline |
| Atreca Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mersana Therapeutics |
Atreca and Mersana Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atreca and Mersana Therapeutics
The main advantage of trading using opposite Atreca and Mersana Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atreca position performs unexpectedly, Mersana Therapeutics 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 Mersana Therapeutics will offset losses from the drop in Mersana Therapeutics' long position.| Atreca vs. Passage Bio | Atreca vs. Stoke Therapeutics | Atreca vs. Revolution Medicines | Atreca vs. Black Diamond Therapeutics |
| Mersana Therapeutics vs. Terns Pharmaceuticals | Mersana Therapeutics vs. Amylyx Pharmaceuticals | Mersana Therapeutics vs. Acumen Pharmaceuticals | Mersana Therapeutics vs. Inozyme Pharma |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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