Correlation Between Mereo BioPharma and Galera Therapeutics
Can any of the company-specific risk be diversified away by investing in both Mereo BioPharma and Galera 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 Mereo BioPharma and Galera Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mereo BioPharma Group and Galera Therapeutics, you can compare the effects of market volatilities on Mereo BioPharma and Galera 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 Mereo BioPharma with a short position of Galera Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mereo BioPharma and Galera Therapeutics.
Diversification Opportunities for Mereo BioPharma and Galera Therapeutics
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mereo and Galera is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Mereo BioPharma Group and Galera Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galera Therapeutics and Mereo BioPharma 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 Mereo BioPharma Group are associated (or correlated) with Galera Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galera Therapeutics has no effect on the direction of Mereo BioPharma i.e., Mereo BioPharma and Galera Therapeutics go up and down completely randomly.
Pair Corralation between Mereo BioPharma and Galera Therapeutics
Given the investment horizon of 90 days Mereo BioPharma is expected to generate 1.17 times less return on investment than Galera Therapeutics. In addition to that, Mereo BioPharma is 1.09 times more volatile than Galera Therapeutics. It trades about 0.08 of its total potential returns per unit of risk. Galera Therapeutics is currently generating about 0.1 per unit of volatility. If you would invest 189.00 in Galera Therapeutics on November 1, 2024 and sell it today you would earn a total of 69.00 from holding Galera Therapeutics or generate 36.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 19.62% |
| Values | Daily Returns |
Mereo BioPharma Group vs. Galera Therapeutics
Performance |
| Timeline |
| Mereo BioPharma Group |
| Galera Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mereo BioPharma and Galera Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mereo BioPharma and Galera Therapeutics
The main advantage of trading using opposite Mereo BioPharma and Galera Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mereo BioPharma position performs unexpectedly, Galera 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 Galera Therapeutics will offset losses from the drop in Galera Therapeutics' long position.| Mereo BioPharma vs. Surrozen | Mereo BioPharma vs. Armata Pharmaceuticals | Mereo BioPharma vs. Pasithea Therapeutics Corp | Mereo BioPharma vs. Aditxt Inc |
| Galera Therapeutics vs. Mereo BioPharma Group | Galera Therapeutics vs. Terns Pharmaceuticals | Galera Therapeutics vs. PDS Biotechnology Corp | Galera 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |