Correlation Between Armata Pharmaceuticals and PolyPid

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

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

Diversification Opportunities for Armata Pharmaceuticals and PolyPid

-0.22

Correlation Coefficient

Armata Pharmaceuticals  PolyPid

Very good diversification

The 3 months correlation between Armata and PolyPid is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Armata Pharmaceuticals and PolyPid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PolyPid and Armata 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 Armata Pharmaceuticals are associated (or correlated) with PolyPid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PolyPid has no effect on the direction of Armata Pharmaceuticals i.e., Armata Pharmaceuticals and PolyPid go up and down completely randomly.

Pair Corralation between Armata Pharmaceuticals and PolyPid

Given the investment horizon of 90 days Armata Pharmaceuticals is expected to generate 1.19 times more return on investment than PolyPid. However, Armata Pharmaceuticals is 1.19 times more volatile than PolyPid. It trades about 0.29 of its potential returns per unit of risk. PolyPid is currently generating about 0.07 per unit of risk. If you would invest  282.00  in Armata Pharmaceuticals on July 9, 2025 and sell it today you would earn a total of  38.00  from holding Armata Pharmaceuticals or generate 13.48% return on investment over 90 days.

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

Armata Pharmaceuticals  vs.  PolyPid

Armata Pharmaceuticals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Armata Pharmaceuticals are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak primary indicators, Armata Pharmaceuticals reported solid returns over the last few months and may actually be approaching a breakup point.

PolyPid

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PolyPid are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, PolyPid is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Armata Pharmaceuticals and PolyPid

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

The idea behind Armata Pharmaceuticals and PolyPid 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.