Correlation Between Chimerix and Lyra Therapeutics
Can any of the company-specific risk be diversified away by investing in both Chimerix and Lyra Therapeutics 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 Chimerix and Lyra Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chimerix and Lyra Therapeutics, you can compare the effects of market volatilities on Chimerix and Lyra Therapeutics 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 Chimerix with a short position of Lyra Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chimerix and Lyra Therapeutics.
Diversification Opportunities for Chimerix and Lyra Therapeutics
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chimerix and Lyra is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Chimerix and Lyra Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyra Therapeutics and Chimerix 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 Chimerix are associated (or correlated) with Lyra Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyra Therapeutics has no effect on the direction of Chimerix i.e., Chimerix and Lyra Therapeutics go up and down completely randomly.
Pair Corralation between Chimerix and Lyra Therapeutics
Given the investment horizon of 90 days Chimerix is expected to generate 0.52 times more return on investment than Lyra Therapeutics. However, Chimerix is 1.91 times less risky than Lyra Therapeutics. It trades about -0.04 of its potential returns per unit of risk. Lyra Therapeutics is currently generating about -0.03 per unit of risk. If you would invest 218.00 in Chimerix on August 28, 2024 and sell it today you would lose (128.00) from holding Chimerix or give up 58.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chimerix vs. Lyra Therapeutics
Performance |
| Timeline |
| Chimerix |
| Lyra Therapeutics |
Chimerix and Lyra Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chimerix and Lyra Therapeutics
The main advantage of trading using opposite Chimerix and Lyra Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chimerix position performs unexpectedly, Lyra Therapeutics 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 Lyra Therapeutics will offset losses from the drop in Lyra Therapeutics' long position.| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil Bio |
| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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