Correlation Between GRPH Old and Lyra Therapeutics
Can any of the company-specific risk be diversified away by investing in both GRPH Old 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 GRPH Old and Lyra Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRPH Old and Lyra Therapeutics, you can compare the effects of market volatilities on GRPH Old 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 GRPH Old with a short position of Lyra Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRPH Old and Lyra Therapeutics.
Diversification Opportunities for GRPH Old and Lyra Therapeutics
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRPH and Lyra is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding GRPH Old and Lyra Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyra Therapeutics and GRPH Old 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 GRPH Old 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 GRPH Old i.e., GRPH Old and Lyra Therapeutics go up and down completely randomly.
Pair Corralation between GRPH Old and Lyra Therapeutics
If you would invest 267.00 in GRPH Old on November 4, 2024 and sell it today you would earn a total of 0.00 from holding GRPH Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
GRPH Old vs. Lyra Therapeutics
Performance |
| Timeline |
| GRPH Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lyra Therapeutics |
GRPH Old and Lyra Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRPH Old and Lyra Therapeutics
The main advantage of trading using opposite GRPH Old and Lyra Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRPH Old 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.| GRPH Old vs. Assembly Biosciences | GRPH Old vs. Instil Bio | GRPH Old vs. Nuvation Bio | GRPH Old vs. Achilles Therapeutics PLC |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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