Correlation Between Structure Therapeutics and Maravai Lifesciences

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

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

Diversification Opportunities for Structure Therapeutics and Maravai Lifesciences

0.73

Correlation Coefficient

Structure Therapeutics  Maravai Lifesciences

Poor diversification

The 3 months correlation between Structure and Maravai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Structure Therapeutics America and Maravai Lifesciences Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maravai Lifesciences and Structure Therapeutics 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 Structure Therapeutics American 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 Structure Therapeutics i.e., Structure Therapeutics and Maravai Lifesciences go up and down completely randomly.

Pair Corralation between Structure Therapeutics and Maravai Lifesciences

Given the investment horizon of 90 days Structure Therapeutics American is expected to generate 0.62 times more return on investment than Maravai Lifesciences. However, Structure Therapeutics American is 1.62 times less risky than Maravai Lifesciences. It trades about -0.04 of its potential returns per unit of risk. Maravai Lifesciences Holdings is currently generating about -0.06 per unit of risk. If you would invest  4,029  in Structure Therapeutics American on September 12, 2024 and sell it today you would lose (559.50) from holding Structure Therapeutics American or give up 13.89% of portfolio value over 90 days.

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

Structure Therapeutics America  vs.  Maravai Lifesciences Holdings

Structure Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Structure Therapeutics American has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Maravai Lifesciences

Risk-Adjusted Performance

0 of 100

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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Structure Therapeutics and Maravai Lifesciences

The main advantage of trading using opposite Structure Therapeutics and Maravai Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Structure Therapeutics 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 Structure Therapeutics American 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 CEOs Directory module to screen CEOs from public companies around the world.