Mereo Biopharma Group Stock Market Value
| MREO Stock | USD 3.56 0.16 4.71% |
| Symbol | Mereo |
Mereo BioPharma Group Price To Book Ratio
Is Biotechnology space 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 Mereo BioPharma. If investors know Mereo 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 Mereo BioPharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.25) | Revenue Per Share 0.007 | Return On Assets (0.24) | Return On Equity (0.48) |
The market value of Mereo BioPharma Group is measured differently than its book value, which is the value of Mereo that is recorded on the company's balance sheet. Investors also form their own opinion of Mereo BioPharma's value that differs from its market value or its book value, called intrinsic value, which is Mereo BioPharma's 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 Mereo BioPharma's market value can be influenced by many factors that don't directly affect Mereo BioPharma's 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 Mereo BioPharma's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mereo BioPharma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mereo BioPharma's 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.
Mereo BioPharma 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Mereo BioPharma's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Mereo BioPharma.
| 12/09/2022 |
| 11/28/2024 |
If you would invest 0.00 in Mereo BioPharma on December 9, 2022 and sell it all today you would earn a total of 0.00 from holding Mereo BioPharma Group or generate 0.0% return on investment in Mereo BioPharma over 720 days. Mereo BioPharma is related to or competes with Bright Minds, HP, Intel, Chevron Corp, Coca Cola, Travelers Companies, and Johnson Johnson. Mereo BioPharma Group plc, a biopharmaceutical company, develops and commercializes therapeutics for the treatment of on... More
Mereo BioPharma Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Mereo BioPharma's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Mereo BioPharma Group upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.17) | |||
| Maximum Drawdown | 17.36 | |||
| Value At Risk | (6.31) | |||
| Potential Upside | 4.8 |
Mereo BioPharma Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Mereo BioPharma's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Mereo BioPharma's standard deviation. In reality, there are many statistical measures that can use Mereo BioPharma historical prices to predict the future Mereo BioPharma's volatility.| Risk Adjusted Performance | (0.1) | |||
| Jensen Alpha | (0.64) | |||
| Total Risk Alpha | (1.05) | |||
| Treynor Ratio | (0.40) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Mereo BioPharma's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Mereo BioPharma Group Backtested Returns
Mereo BioPharma Group has Sharpe Ratio of -0.1, which conveys that the firm had a -0.1% return per unit of risk over the last 3 months. Mereo BioPharma exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Mereo BioPharma's Mean Deviation of 2.67, risk adjusted performance of (0.1), and Standard Deviation of 3.54 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of 1.21, which conveys a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Mereo BioPharma will likely underperform. At this point, Mereo BioPharma Group has a negative expected return of -0.37%. Please make sure to verify Mereo BioPharma's treynor ratio, kurtosis, as well as the relationship between the Kurtosis and day typical price , to decide if Mereo BioPharma Group performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.62 |
Good predictability
Mereo BioPharma Group has good predictability. Overlapping area represents the amount of predictability between Mereo BioPharma time series from 9th of December 2022 to 4th of December 2023 and 4th of December 2023 to 28th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Mereo BioPharma Group price movement. The serial correlation of 0.62 indicates that roughly 62.0% of current Mereo BioPharma price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.62 | |
| Spearman Rank Test | 0.64 | |
| Residual Average | 0.0 | |
| Price Variance | 0.48 |
Mereo BioPharma Group lagged returns against current returns
Autocorrelation, which is Mereo BioPharma stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Mereo BioPharma's stock expected returns. We can calculate the autocorrelation of Mereo BioPharma returns to help us make a trade decision. For example, suppose you find that Mereo BioPharma has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Mereo BioPharma regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Mereo BioPharma stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Mereo BioPharma stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Mereo BioPharma stock over time.
Current vs Lagged Prices |
| Timeline |
Mereo BioPharma Lagged Returns
When evaluating Mereo BioPharma's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Mereo BioPharma stock have on its future price. Mereo BioPharma autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Mereo BioPharma autocorrelation shows the relationship between Mereo BioPharma stock current value and its past values and can show if there is a momentum factor associated with investing in Mereo BioPharma Group.
Regressed Prices |
| Timeline |
Pair Trading with Mereo BioPharma
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Mereo BioPharma position performs unexpectedly, the other equity 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 Mereo BioPharma will appreciate offsetting losses from the drop in the long position's value.Moving together with Mereo Stock
| 0.72 | JNJ | Johnson Johnson Fiscal Year End 28th of January 2025 | PairCorr |
| 0.64 | MRK | Merck Company Fiscal Year End 6th of February 2025 | PairCorr |
Moving against Mereo Stock
| 0.67 | BMY | Bristol Myers Squibb Aggressive Push | PairCorr |
| 0.51 | NAMS | NewAmsterdam Pharma | PairCorr |
| 0.42 | MNOV | MediciNova | PairCorr |
The ability to find closely correlated positions to Mereo BioPharma could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Mereo BioPharma when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Mereo BioPharma - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Mereo BioPharma Group to buy it.
The correlation of Mereo BioPharma is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Mereo BioPharma moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Mereo BioPharma Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Mereo BioPharma can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Mereo BioPharma Correlation, Mereo BioPharma Volatility and Mereo BioPharma Alpha and Beta module to complement your research on Mereo BioPharma. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Mereo BioPharma technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.