Correlation Between Lyra Therapeutics and Bioatla
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Bioatla 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 Lyra Therapeutics and Bioatla into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and Bioatla, you can compare the effects of market volatilities on Lyra Therapeutics and Bioatla 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 Lyra Therapeutics with a short position of Bioatla. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Bioatla.
Diversification Opportunities for Lyra Therapeutics and Bioatla
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lyra and Bioatla is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Bioatla in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioatla and Lyra Therapeutics 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 Lyra Therapeutics are associated (or correlated) with Bioatla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioatla has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Bioatla go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Bioatla
Given the investment horizon of 90 days Lyra Therapeutics is expected to under-perform the Bioatla. But the stock apears to be less risky and, when comparing its historical volatility, Lyra Therapeutics is 1.06 times less risky than Bioatla. The stock trades about -0.03 of its potential returns per unit of risk. The Bioatla is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 364.00 in Bioatla on August 26, 2024 and sell it today you would lose (207.00) from holding Bioatla or give up 56.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyra Therapeutics vs. Bioatla
Performance |
| Timeline |
| Lyra Therapeutics |
| Bioatla |
Lyra Therapeutics and Bioatla Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and Bioatla
The main advantage of trading using opposite Lyra Therapeutics and Bioatla positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Bioatla 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 Bioatla will offset losses from the drop in Bioatla's long position.| Lyra Therapeutics vs. Eliem Therapeutics | Lyra Therapeutics vs. HCW Biologics | Lyra Therapeutics vs. Scpharmaceuticals | Lyra Therapeutics vs. Milestone Pharmaceuticals |
| Bioatla vs. Pmv Pharmaceuticals | Bioatla vs. C4 Therapeutics | Bioatla vs. Nautilus Biotechnology | Bioatla vs. Century Therapeutics |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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