Correlation Between 60 Degrees and Maravai Lifesciences

Can any of the company-specific risk be diversified away by investing in both 60 Degrees 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 60 Degrees and Maravai Lifesciences into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 60 Degrees Pharmaceuticals, and Maravai Lifesciences Holdings, you can compare the effects of market volatilities on 60 Degrees 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 60 Degrees with a short position of Maravai Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of 60 Degrees and Maravai Lifesciences.

Diversification Opportunities for 60 Degrees and Maravai Lifesciences

0.83

Correlation Coefficient

60 Degrees  Maravai Lifesciences

Very poor diversification

The 3 months correlation between SXTPW and Maravai is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding 60 Degrees 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 60 Degrees 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 60 Degrees 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 60 Degrees i.e., 60 Degrees and Maravai Lifesciences go up and down completely randomly.

Pair Corralation between 60 Degrees and Maravai Lifesciences

Assuming the 90 days horizon 60 Degrees Pharmaceuticals, is expected to generate 9.35 times more return on investment than Maravai Lifesciences. However, 60 Degrees is 9.35 times more volatile than Maravai Lifesciences Holdings. It trades about 0.2 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  4.07  in 60 Degrees Pharmaceuticals, on September 13, 2024 and sell it today you would lose (1.08) from holding 60 Degrees Pharmaceuticals, or give up 26.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	50.0%
Values	Daily Returns

60 Degrees Pharmaceuticals,  vs.  Maravai Lifesciences Holdings

60 Degrees Pharmaceu

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in 60 Degrees Pharmaceuticals, are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, 60 Degrees showed solid returns over the last few months and may actually be approaching a breakup point.

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 60 Degrees and Maravai Lifesciences

The main advantage of trading using opposite 60 Degrees and Maravai Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 60 Degrees 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 60 Degrees 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.

Check out your portfolio center.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.