Correlation Between Mersana Therapeutics and MacroGenics
Can any of the company-specific risk be diversified away by investing in both Mersana Therapeutics and MacroGenics 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 MacroGenics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mersana Therapeutics and MacroGenics, you can compare the effects of market volatilities on Mersana Therapeutics and MacroGenics 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 MacroGenics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mersana Therapeutics and MacroGenics.
Diversification Opportunities for Mersana Therapeutics and MacroGenics
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mersana and MacroGenics is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mersana Therapeutics and MacroGenics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MacroGenics 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 MacroGenics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MacroGenics has no effect on the direction of Mersana Therapeutics i.e., Mersana Therapeutics and MacroGenics go up and down completely randomly.
Pair Corralation between Mersana Therapeutics and MacroGenics
Given the investment horizon of 90 days Mersana Therapeutics is expected to generate 0.77 times more return on investment than MacroGenics. However, Mersana Therapeutics is 1.29 times less risky than MacroGenics. It trades about 0.21 of its potential returns per unit of risk. MacroGenics is currently generating about 0.14 per unit of risk. If you would invest 597.00 in Mersana Therapeutics on June 12, 2025 and sell it today you would earn a total of 138.00 from holding Mersana Therapeutics or generate 23.12% 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. MacroGenics
Performance |
| Timeline |
| Mersana Therapeutics |
| MacroGenics |
Mersana Therapeutics and MacroGenics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mersana Therapeutics and MacroGenics
The main advantage of trading using opposite Mersana Therapeutics and MacroGenics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mersana Therapeutics position performs unexpectedly, MacroGenics 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 MacroGenics will offset losses from the drop in MacroGenics' long position.The idea behind Mersana Therapeutics and MacroGenics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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