Correlation Between Crispr Therapeutics and Merus BV

Can any of the company-specific risk be diversified away by investing in both Crispr Therapeutics and Merus BV 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 Crispr Therapeutics and Merus BV into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Crispr Therapeutics AG and Merus BV, you can compare the effects of market volatilities on Crispr Therapeutics and Merus BV 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 Crispr Therapeutics with a short position of Merus BV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crispr Therapeutics and Merus BV.

Diversification Opportunities for Crispr Therapeutics and Merus BV

0.8

Correlation Coefficient

Crispr Therapeutics  Merus BV

Very poor diversification

The 3 months correlation between Crispr and Merus is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Crispr Therapeutics AG and Merus BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merus BV and Crispr 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 Crispr Therapeutics AG are associated (or correlated) with Merus BV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merus BV has no effect on the direction of Crispr Therapeutics i.e., Crispr Therapeutics and Merus BV go up and down completely randomly.

Pair Corralation between Crispr Therapeutics and Merus BV

Given the investment horizon of 90 days Crispr Therapeutics is expected to generate 3.19 times less return on investment than Merus BV. But when comparing it to its historical volatility, Crispr Therapeutics AG is 1.29 times less risky than Merus BV. It trades about 0.06 of its potential returns per unit of risk. Merus BV is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  6,569  in Merus BV on July 24, 2025 and sell it today you would earn a total of  2,891  from holding Merus BV or generate 44.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Crispr Therapeutics AG  vs.  Merus BV

Crispr Therapeutics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Crispr Therapeutics AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Crispr Therapeutics reported solid returns over the last few months and may actually be approaching a breakup point.

Merus BV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Merus BV are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Merus BV unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Crispr Therapeutics and Merus BV

The main advantage of trading using opposite Crispr Therapeutics and Merus BV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crispr Therapeutics position performs unexpectedly, Merus BV 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 Merus BV will offset losses from the drop in Merus BV's long position.

The idea behind Crispr Therapeutics AG and Merus BV 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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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.