Correlation Between Lyra Therapeutics and Bolt Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Bolt Biotherapeutics 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 Bolt Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and Bolt Biotherapeutics, you can compare the effects of market volatilities on Lyra Therapeutics and Bolt Biotherapeutics 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 Bolt Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Bolt Biotherapeutics.
Diversification Opportunities for Lyra Therapeutics and Bolt Biotherapeutics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lyra and Bolt is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics 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 Bolt Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Biotherapeutics has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Bolt Biotherapeutics go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Bolt Biotherapeutics
Given the investment horizon of 90 days Lyra Therapeutics is expected to under-perform the Bolt Biotherapeutics. In addition to that, Lyra Therapeutics is 1.09 times more volatile than Bolt Biotherapeutics. It trades about -0.3 of its total potential returns per unit of risk. Bolt Biotherapeutics is currently generating about -0.23 per unit of volatility. If you would invest 57.00 in Bolt Biotherapeutics on November 2, 2024 and sell it today you would lose (7.00) from holding Bolt Biotherapeutics or give up 12.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyra Therapeutics vs. Bolt Biotherapeutics
Performance |
| Timeline |
| Lyra Therapeutics |
| Bolt Biotherapeutics |
Lyra Therapeutics and Bolt Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and Bolt Biotherapeutics
The main advantage of trading using opposite Lyra Therapeutics and Bolt Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Bolt Biotherapeutics 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 Bolt Biotherapeutics will offset losses from the drop in Bolt Biotherapeutics' long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| Bolt Biotherapeutics vs. Assembly Biosciences | Bolt Biotherapeutics vs. Instil Bio | Bolt Biotherapeutics vs. CytomX Therapeutics | Bolt Biotherapeutics vs. Achilles Therapeutics PLC |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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