Correlation Between Mersana Therapeutics and Sarepta Therapeutics
Can any of the company-specific risk be diversified away by investing in both Mersana Therapeutics and Sarepta 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 Mersana Therapeutics and Sarepta Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mersana Therapeutics and Sarepta Therapeutics, you can compare the effects of market volatilities on Mersana Therapeutics and Sarepta 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 Mersana Therapeutics with a short position of Sarepta Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mersana Therapeutics and Sarepta Therapeutics.
Diversification Opportunities for Mersana Therapeutics and Sarepta Therapeutics
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mersana and Sarepta is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mersana Therapeutics and Sarepta Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sarepta Therapeutics 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 Sarepta Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sarepta Therapeutics has no effect on the direction of Mersana Therapeutics i.e., Mersana Therapeutics and Sarepta Therapeutics go up and down completely randomly.
Pair Corralation between Mersana Therapeutics and Sarepta Therapeutics
Given the investment horizon of 90 days Mersana Therapeutics is expected to under-perform the Sarepta Therapeutics. In addition to that, Mersana Therapeutics is 7.07 times more volatile than Sarepta Therapeutics. It trades about -0.24 of its total potential returns per unit of risk. Sarepta Therapeutics is currently generating about -0.22 per unit of volatility. If you would invest 12,409 in Sarepta Therapeutics on November 2, 2024 and sell it today you would lose (964.00) from holding Sarepta Therapeutics or give up 7.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mersana Therapeutics vs. Sarepta Therapeutics
Performance |
| Timeline |
| Mersana Therapeutics |
| Sarepta Therapeutics |
Mersana Therapeutics and Sarepta Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mersana Therapeutics and Sarepta Therapeutics
The main advantage of trading using opposite Mersana Therapeutics and Sarepta Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mersana Therapeutics position performs unexpectedly, Sarepta 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 Sarepta Therapeutics will offset losses from the drop in Sarepta Therapeutics' long position.| Mersana Therapeutics vs. Terns Pharmaceuticals | Mersana Therapeutics vs. Amylyx Pharmaceuticals | Mersana Therapeutics vs. Acumen Pharmaceuticals | Mersana Therapeutics vs. Inozyme Pharma |
| Sarepta Therapeutics vs. Krystal Biotech | Sarepta Therapeutics vs. PTC Therapeutics | Sarepta Therapeutics vs. Iovance Biotherapeutics | Sarepta Therapeutics vs. Madrigal Pharmaceuticals |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |