Correlation Between Mesa Air and Advanced Proteome

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

By analyzing existing cross correlation between Mesa Air Group and Advanced Proteome Therapeutics, you can compare the effects of market volatilities on Mesa Air and Advanced Proteome 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 Mesa Air with a short position of Advanced Proteome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and Advanced Proteome.

Diversification Opportunities for Mesa Air and Advanced Proteome

0.0

Correlation Coefficient

Mesa Air  Advanced Proteome

Pay attention - limited upside

The 3 months correlation between Mesa and Advanced is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and Advanced Proteome Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Proteome and Mesa Air 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 Mesa Air Group are associated (or correlated) with Advanced Proteome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Proteome has no effect on the direction of Mesa Air i.e., Mesa Air and Advanced Proteome go up and down completely randomly.

Pair Corralation between Mesa Air and Advanced Proteome

If you would invest  101.00  in Mesa Air Group on May 13, 2025 and sell it today you would earn a total of  7.00  from holding Mesa Air Group or generate 6.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	6.35%
Values	Daily Returns

Mesa Air Group  vs.  Advanced Proteome Therapeutics

Mesa Air Group

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Mesa Air Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal basic indicators, Mesa Air may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Advanced Proteome

Risk-Adjusted Performance

Weakest

Over the last 90 days Advanced Proteome Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Advanced Proteome is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Mesa Air and Advanced Proteome

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

The idea behind Mesa Air Group and Advanced Proteome Therapeutics 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.