Correlation Between Apellis Pharmaceuticals and Maravai Lifesciences

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

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

Diversification Opportunities for Apellis Pharmaceuticals and Maravai Lifesciences

0.93

Correlation Coefficient

Apellis Pharmaceuticals  Maravai Lifesciences

Almost no diversification

The 3 months correlation between Apellis and Maravai is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Apellis Pharmaceuticals and Maravai Lifesciences Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maravai Lifesciences and Apellis 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 Apellis Pharmaceuticals are associated (or correlated) with Maravai Lifesciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maravai Lifesciences has no effect on the direction of Apellis Pharmaceuticals i.e., Apellis Pharmaceuticals and Maravai Lifesciences go up and down completely randomly.

Pair Corralation between Apellis Pharmaceuticals and Maravai Lifesciences

Given the investment horizon of 90 days Apellis Pharmaceuticals is expected to generate 0.57 times more return on investment than Maravai Lifesciences. However, Apellis Pharmaceuticals is 1.75 times less risky than Maravai Lifesciences. It trades about -0.15 of its potential returns per unit of risk. Maravai Lifesciences Holdings is currently generating about -0.22 per unit of risk. If you would invest  3,296  in Apellis Pharmaceuticals on December 26, 2024 and sell it today you would lose (917.00) from holding Apellis Pharmaceuticals or give up 27.82% of portfolio value over 90 days.

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

Apellis Pharmaceuticals  vs.  Maravai Lifesciences Holdings

Apellis Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apellis Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Maravai Lifesciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maravai Lifesciences Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Apellis Pharmaceuticals and Maravai Lifesciences

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

The idea behind Apellis Pharmaceuticals and Maravai Lifesciences Holdings 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.