Correlation Between Immunome and Lyra Therapeutics
Can any of the company-specific risk be diversified away by investing in both Immunome 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 Immunome and Lyra Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immunome and Lyra Therapeutics, you can compare the effects of market volatilities on Immunome 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 Immunome with a short position of Lyra Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunome and Lyra Therapeutics.
Diversification Opportunities for Immunome and Lyra Therapeutics
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Immunome and Lyra is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Immunome and Lyra Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyra Therapeutics and Immunome 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 Immunome 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 Immunome i.e., Immunome and Lyra Therapeutics go up and down completely randomly.
Pair Corralation between Immunome and Lyra Therapeutics
Given the investment horizon of 90 days Immunome is expected to generate 0.84 times more return on investment than Lyra Therapeutics. However, Immunome is 1.19 times less risky than Lyra Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Lyra Therapeutics is currently generating about -0.03 per unit of risk. If you would invest 1,459 in Immunome on September 1, 2024 and sell it today you would lose (104.00) from holding Immunome or give up 7.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immunome vs. Lyra Therapeutics
Performance |
| Timeline |
| Immunome |
| Lyra Therapeutics |
Immunome and Lyra Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immunome and Lyra Therapeutics
The main advantage of trading using opposite Immunome and Lyra Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunome 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.| Immunome vs. Anebulo Pharmaceuticals | Immunome vs. Adagene | Immunome vs. Acrivon Therapeutics, Common | Immunome vs. AnaptysBio |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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