4.51 -0.16 (-3.63%) Sell

Want to invest in MRSN? Avoid as it delivered massive losses

13 min read

MERSANA THERAPEUTICS, INC. delivered massive losses on Tuesday. It returned -3.63% to close at 4.51 which is it's 52 week low, down -80% from it's 52 week high.

[Themes containing MRSN]

MRSN showed a strong down trend over the last 3 months. During this period MRSN returned -62.7% and saw a maximum drawdown of -63.24%. There was a short signal during this period which returned +62.7%.


MRSN has been underperforming the SP500 index in recent time, after having outperformed till 25 May, 2018. Over the last 1 year and 6 months, MRSN underperformed the SP500 index on 50% days. Which indicates that on days MRSN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months MRSN was mostly loss making and delivered on average -1.44% per day. It's best return during this period (of +10.09%) was on Monday, 26 Nov, 2018. While it's worst loss in the same period (of -15.49%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 17 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -31.3% losses to investors. This was followed by a bullish trend that started on 1 Nov, 2018 and ended on 5 Nov, 2018. This bullish trend delivered +9.91% to investors.

On monthly basis, MRSN delivered losses in more months over the last year, than profits. MRSN delivered profits less regularly than SP500 index. MRSN was also a more risky investment than SP500 index as it's worst month in the last year, Jul 2018, returned -37.96% compared to -7.75% returned by SP500 index in Dec 2018. MRSN had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -93.66%.

Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.
-- Peter Lynch.

MRSN is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant fall in MRSN's volatility from 19 Sep, 2018 to 25 Sep, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that MRSN has positive skewness in it's return distribution. This indicates that investors can expect MRSN to make attempts to recover from drawdowns quickly. Which makes MRSN a good candidate for momentum based trading on short-term bullish trends or counter-trends.

SP500 index has more chance of extreme outcomes than MRSN. Therefore, SP500 must receive a lower allocation than MRSN in your portfolio. SP500 index usually has shorter drawdown period than MRSN.

On a general note (since you are interested in MRSN), I has performed really well this year and deserves to be closely tracked for investment opportunities.

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