Merrimack Pharmaceuticals Stock Volatility

MACK Stock  USD 14.75  0.03  0.20%   
We consider Merrimack Pharmaceuticals not too volatile. Merrimack Pharmaceuticals has Sharpe Ratio of 0.13, which conveys that the firm had a 0.13% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Merrimack Pharmaceuticals, which you can use to evaluate the volatility of the firm. Please verify Merrimack Pharmaceuticals' Mean Deviation of 0.6607, downside deviation of 0.7005, and Risk Adjusted Performance of 0.0874 to check out if the risk estimate we provide is consistent with the expected return of 0.16%. Key indicators related to Merrimack Pharmaceuticals' volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Merrimack Pharmaceuticals Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Merrimack daily returns, and it is calculated using variance and standard deviation. We also use Merrimack's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Merrimack Pharmaceuticals volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Merrimack Pharmaceuticals can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Merrimack Pharmaceuticals at lower prices. For example, an investor can purchase Merrimack stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Merrimack Pharmaceuticals' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Merrimack Stock

  0.94EQ Equillium Financial Report 9th of May 2024 PairCorr
  0.76MDWD Mediwound Financial Report 4th of June 2024 PairCorr

Moving against Merrimack Stock

  0.77VALN Valneva SE ADR Financial Report 2nd of May 2024 PairCorr
  0.74KA Kineta Inc Report 29th of March 2024 PairCorr
  0.74MEIP MEI Pharma Financial Report 9th of May 2024 PairCorr
  0.73DBVT DBV Technologies Financial Report 2nd of May 2024 PairCorr
  0.71TFX Teleflex Incorporated Financial Report 2nd of May 2024 PairCorr
  0.69MCRB Seres Therapeutics Financial Report 14th of May 2024 PairCorr
  0.61CALT Calliditas Therapeutics Financial Report 21st of May 2024 PairCorr
  0.57MBIO Mustang Bio Report 3rd of April 2024 PairCorr
  0.52MGTX MeiraGTx Holdings PLC Financial Report 9th of May 2024 PairCorr

Merrimack Pharmaceuticals Market Sensitivity And Downside Risk

Merrimack Pharmaceuticals' beta coefficient measures the volatility of Merrimack stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Merrimack stock's returns against your selected market. In other words, Merrimack Pharmaceuticals's beta of -0.61 provides an investor with an approximation of how much risk Merrimack Pharmaceuticals stock can potentially add to one of your existing portfolios. Merrimack Pharmaceuticals exhibits relatively low volatility with skewness of 3.48 and kurtosis of 18.17. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Merrimack Pharmaceuticals' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Merrimack Pharmaceuticals' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Merrimack Pharmaceuticals Demand Trend
Check current 90 days Merrimack Pharmaceuticals correlation with market (NYSE Composite)

Merrimack Beta

    
  -0.61  
Merrimack standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.26  
It is essential to understand the difference between upside risk (as represented by Merrimack Pharmaceuticals's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Merrimack Pharmaceuticals' daily returns or price. Since the actual investment returns on holding a position in merrimack stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Merrimack Pharmaceuticals.

Using Merrimack Put Option to Manage Risk

Put options written on Merrimack Pharmaceuticals grant holders of the option the right to sell a specified amount of Merrimack Pharmaceuticals at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Merrimack Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Merrimack Pharmaceuticals' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Merrimack Pharmaceuticals will be realized, the loss incurred will be offset by the profits made with the option trade.

Merrimack Pharmaceuticals' PUT expiring on 2024-04-19

   Profit   
       Merrimack Pharmaceuticals Price At Expiration  

Merrimack Pharmaceuticals Stock Volatility Analysis

Volatility refers to the frequency at which Merrimack Pharmaceuticals stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Merrimack Pharmaceuticals' price changes. Investors will then calculate the volatility of Merrimack Pharmaceuticals' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Merrimack Pharmaceuticals' volatility:

Historical Volatility

This type of stock volatility measures Merrimack Pharmaceuticals' fluctuations based on previous trends. It's commonly used to predict Merrimack Pharmaceuticals' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Merrimack Pharmaceuticals' current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Merrimack Pharmaceuticals' to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Merrimack Pharmaceuticals Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Merrimack Pharmaceuticals Projected Return Density Against Market

Given the investment horizon of 90 days Merrimack Pharmaceuticals has a beta of -0.6111 . This indicates as returns on benchmark increase, returns on holding Merrimack Pharmaceuticals are expected to decrease at a much lower rate. During the bear market, however, Merrimack Pharmaceuticals is likely to outperform the market.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Merrimack Pharmaceuticals or Biotechnology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Merrimack Pharmaceuticals' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Merrimack stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Merrimack Pharmaceuticals has an alpha of 0.246, implying that it can generate a 0.25 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Merrimack Pharmaceuticals' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how merrimack stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Merrimack Pharmaceuticals Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Merrimack Pharmaceuticals Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Merrimack Pharmaceuticals is 769.08. The daily returns are distributed with a variance of 1.59 and standard deviation of 1.26. The mean deviation of Merrimack Pharmaceuticals is currently at 0.67. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.25
β
Beta against NYSE Composite-0.61
σ
Overall volatility
1.26
Ir
Information ratio 0.04

Merrimack Pharmaceuticals Stock Return Volatility

Merrimack Pharmaceuticals historical daily return volatility represents how much of Merrimack Pharmaceuticals stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.26% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Merrimack Pharmaceuticals Volatility

Volatility is a rate at which the price of Merrimack Pharmaceuticals or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Merrimack Pharmaceuticals may increase or decrease. In other words, similar to Merrimack's beta indicator, it measures the risk of Merrimack Pharmaceuticals and helps estimate the fluctuations that may happen in a short period of time. So if prices of Merrimack Pharmaceuticals fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2024
Selling And Marketing Expenses5.1 M4.5 M
Merrimack Pharmaceuticals' stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Merrimack Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Merrimack Pharmaceuticals' price varies over time.

3 ways to utilize Merrimack Pharmaceuticals' volatility to invest better

Higher Merrimack Pharmaceuticals' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Merrimack Pharmaceuticals stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Merrimack Pharmaceuticals stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Merrimack Pharmaceuticals investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Merrimack Pharmaceuticals' stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Merrimack Pharmaceuticals' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Merrimack Pharmaceuticals Investment Opportunity

Merrimack Pharmaceuticals has a volatility of 1.26 and is 2.21 times more volatile than NYSE Composite. 11 percent of all equities and portfolios are less risky than Merrimack Pharmaceuticals. You can use Merrimack Pharmaceuticals to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Merrimack Pharmaceuticals to be traded at $15.49 in 90 days.

Very good diversification

The correlation between Merrimack Pharmaceuticals and NYA is -0.28 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Merrimack Pharmaceuticals and NYA in the same portfolio, assuming nothing else is changed.

Merrimack Pharmaceuticals Additional Risk Indicators

The analysis of Merrimack Pharmaceuticals' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Merrimack Pharmaceuticals' investment and either accepting that risk or mitigating it. Along with some common measures of Merrimack Pharmaceuticals stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Merrimack Pharmaceuticals Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Merrimack Pharmaceuticals as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Merrimack Pharmaceuticals' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Merrimack Pharmaceuticals' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Merrimack Pharmaceuticals.
When determining whether Merrimack Pharmaceuticals is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Merrimack Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Merrimack Pharmaceuticals Stock. Highlighted below are key reports to facilitate an investment decision about Merrimack Pharmaceuticals Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Merrimack Pharmaceuticals. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.
For more information on how to buy Merrimack Stock please use our How to buy in Merrimack Stock guide.
Note that the Merrimack Pharmaceuticals information on this page should be used as a complementary analysis to other Merrimack Pharmaceuticals' statistical models used 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 Transaction History module to view history of all your transactions and understand their impact on performance.

Complementary Tools for Merrimack Stock analysis

When running Merrimack Pharmaceuticals' price analysis, check to measure Merrimack Pharmaceuticals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Merrimack Pharmaceuticals is operating at the current time. Most of Merrimack Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Merrimack Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Merrimack Pharmaceuticals' price. Additionally, you may evaluate how the addition of Merrimack Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Money Managers
Screen money managers from public funds and ETFs managed around the world
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Is Merrimack Pharmaceuticals' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Merrimack Pharmaceuticals. If investors know Merrimack will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Merrimack Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.08)
Return On Assets
(0.07)
Return On Equity
(0.06)
The market value of Merrimack Pharmaceuticals is measured differently than its book value, which is the value of Merrimack that is recorded on the company's balance sheet. Investors also form their own opinion of Merrimack Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Merrimack Pharmaceuticals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Merrimack Pharmaceuticals' market value can be influenced by many factors that don't directly affect Merrimack Pharmaceuticals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Merrimack Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Merrimack Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merrimack Pharmaceuticals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.