Correlation Between Mersana Therapeutics and Syndax Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Mersana Therapeutics and Syndax Pharmaceuticals 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 Mersana Therapeutics and Syndax Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mersana Therapeutics and Syndax Pharmaceuticals, you can compare the effects of market volatilities on Mersana Therapeutics and Syndax Pharmaceuticals 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 Mersana Therapeutics with a short position of Syndax Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mersana Therapeutics and Syndax Pharmaceuticals.
Diversification Opportunities for Mersana Therapeutics and Syndax Pharmaceuticals
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mersana and Syndax is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mersana Therapeutics and Syndax Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syndax Pharmaceuticals and Mersana Therapeutics 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 Mersana Therapeutics are associated (or correlated) with Syndax Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syndax Pharmaceuticals has no effect on the direction of Mersana Therapeutics i.e., Mersana Therapeutics and Syndax Pharmaceuticals go up and down completely randomly.
Pair Corralation between Mersana Therapeutics and Syndax Pharmaceuticals
Given the investment horizon of 90 days Mersana Therapeutics is expected to under-perform the Syndax Pharmaceuticals. In addition to that, Mersana Therapeutics is 3.77 times more volatile than Syndax Pharmaceuticals. It trades about -0.4 of its total potential returns per unit of risk. Syndax Pharmaceuticals is currently generating about 0.04 per unit of volatility. If you would invest 1,285 in Syndax Pharmaceuticals on October 20, 2024 and sell it today you would earn a total of 23.00 from holding Syndax Pharmaceuticals or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mersana Therapeutics vs. Syndax Pharmaceuticals
Performance |
| Timeline |
| Mersana Therapeutics |
| Syndax Pharmaceuticals |
Mersana Therapeutics and Syndax Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mersana Therapeutics and Syndax Pharmaceuticals
The main advantage of trading using opposite Mersana Therapeutics and Syndax Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mersana Therapeutics position performs unexpectedly, Syndax Pharmaceuticals 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 Syndax Pharmaceuticals will offset losses from the drop in Syndax Pharmaceuticals' long position.| Mersana Therapeutics vs. Terns Pharmaceuticals | Mersana Therapeutics vs. Amylyx Pharmaceuticals | Mersana Therapeutics vs. Acumen Pharmaceuticals | Mersana Therapeutics vs. Inozyme Pharma |
| Syndax Pharmaceuticals vs. Cogent Biosciences | Syndax Pharmaceuticals vs. Cullinan Oncology LLC | Syndax Pharmaceuticals vs. Kalvista Pharmaceuticals | Syndax Pharmaceuticals vs. Mersana Therapeutics |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Correlations Find global opportunities by holding instruments from different markets |