Correlation Between Mersana Therapeutics and Y MAbs
Can any of the company-specific risk be diversified away by investing in both Mersana Therapeutics and Y MAbs 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 Y MAbs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mersana Therapeutics and Y mAbs Therapeutics, you can compare the effects of market volatilities on Mersana Therapeutics and Y MAbs 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 Y MAbs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mersana Therapeutics and Y MAbs.
Diversification Opportunities for Mersana Therapeutics and Y MAbs
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mersana and YMAB is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mersana Therapeutics and Y mAbs Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Y mAbs 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 Y MAbs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Y mAbs Therapeutics has no effect on the direction of Mersana Therapeutics i.e., Mersana Therapeutics and Y MAbs go up and down completely randomly.
Pair Corralation between Mersana Therapeutics and Y MAbs
Given the investment horizon of 90 days Mersana Therapeutics is expected to generate 1.71 times more return on investment than Y MAbs. However, Mersana Therapeutics is 1.71 times more volatile than Y mAbs Therapeutics. It trades about 0.13 of its potential returns per unit of risk. Y mAbs Therapeutics is currently generating about -0.19 per unit of risk. If you would invest 187.00 in Mersana Therapeutics on August 31, 2024 and sell it today you would earn a total of 32.00 from holding Mersana Therapeutics or generate 17.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mersana Therapeutics vs. Y mAbs Therapeutics
Performance |
| Timeline |
| Mersana Therapeutics |
| Y mAbs Therapeutics |
Mersana Therapeutics and Y MAbs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mersana Therapeutics and Y MAbs
The main advantage of trading using opposite Mersana Therapeutics and Y MAbs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mersana Therapeutics position performs unexpectedly, Y MAbs 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 Y MAbs will offset losses from the drop in Y MAbs' long position.| Mersana Therapeutics vs. Terns Pharmaceuticals | Mersana Therapeutics vs. Amylyx Pharmaceuticals | Mersana Therapeutics vs. Acumen Pharmaceuticals | Mersana Therapeutics vs. Inozyme Pharma |
| Y MAbs vs. Revolution Medicines | Y MAbs vs. Black Diamond Therapeutics | Y MAbs vs. Passage Bio | Y MAbs vs. Bluebird bio |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |