Correlation Between Certara and Maravai Lifesciences

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

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

Diversification Opportunities for Certara and Maravai Lifesciences

-0.35

Correlation Coefficient

Certara  Maravai Lifesciences

Very good diversification

The 3 months correlation between Certara and Maravai is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Certara and Maravai Lifesciences Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maravai Lifesciences and Certara 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 Certara 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 Certara i.e., Certara and Maravai Lifesciences go up and down completely randomly.

Pair Corralation between Certara and Maravai Lifesciences

Given the investment horizon of 90 days Certara is expected to under-perform the Maravai Lifesciences. But the stock apears to be less risky and, when comparing its historical volatility, Certara is 1.58 times less risky than Maravai Lifesciences. The stock trades about -0.07 of its potential returns per unit of risk. The Maravai Lifesciences Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  212.00  in Maravai Lifesciences Holdings on May 7, 2025 and sell it today you would earn a total of  15.00  from holding Maravai Lifesciences Holdings or generate 7.08% return on investment over 90 days.

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

Certara  vs.  Maravai Lifesciences Holdings

Certara

Risk-Adjusted Performance

Very Weak

Over the last 90 days Certara has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Maravai Lifesciences

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Maravai Lifesciences Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Maravai Lifesciences demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Certara and Maravai Lifesciences

The main advantage of trading using opposite Certara and Maravai Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Certara 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 Certara 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.