Correlation Between Merrimack Pharmaceuticals and OPTHEA

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

By analyzing existing cross correlation between Merrimack Pharmaceuticals and OPTHEA LTD, you can compare the effects of market volatilities on Merrimack Pharmaceuticals and OPTHEA 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 Merrimack Pharmaceuticals with a short position of OPTHEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merrimack Pharmaceuticals and OPTHEA.

Diversification Opportunities for Merrimack Pharmaceuticals and OPTHEA

0.0

Correlation Coefficient

Merrimack Pharmaceuticals  OPTHEA

Pay attention - limited upside

The 3 months correlation between Merrimack and OPTHEA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merrimack Pharmaceuticals and OPTHEA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPTHEA LTD and Merrimack Pharmaceuticals 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 Merrimack Pharmaceuticals are associated (or correlated) with OPTHEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPTHEA LTD has no effect on the direction of Merrimack Pharmaceuticals i.e., Merrimack Pharmaceuticals and OPTHEA go up and down completely randomly.

Pair Corralation between Merrimack Pharmaceuticals and OPTHEA

If you would invest  341.00  in OPTHEA LTD on May 5, 2025 and sell it today you would earn a total of  0.00  from holding OPTHEA LTD or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Merrimack Pharmaceuticals  vs.  OPTHEA LTD

Merrimack Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Merrimack Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Merrimack Pharmaceuticals is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

OPTHEA LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days OPTHEA LTD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, OPTHEA is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Merrimack Pharmaceuticals and OPTHEA

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

The idea behind Merrimack Pharmaceuticals and OPTHEA LTD 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.