Correlation Between Lyra Therapeutics and Chimerix
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Chimerix 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 Chimerix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and Chimerix, you can compare the effects of market volatilities on Lyra Therapeutics and Chimerix 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 Chimerix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Chimerix.
Diversification Opportunities for Lyra Therapeutics and Chimerix
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyra and Chimerix is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Chimerix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimerix 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 Chimerix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimerix has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Chimerix go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Chimerix
Given the investment horizon of 90 days Lyra Therapeutics is expected to under-perform the Chimerix. But the stock apears to be less risky and, when comparing its historical volatility, Lyra Therapeutics is 1.62 times less risky than Chimerix. The stock trades about -0.02 of its potential returns per unit of risk. The Chimerix is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 158.00 in Chimerix on November 19, 2024 and sell it today you would earn a total of 280.00 from holding Chimerix or generate 177.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyra Therapeutics vs. Chimerix
Performance |
| Timeline |
| Lyra Therapeutics |
| Chimerix |
Lyra Therapeutics and Chimerix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and Chimerix
The main advantage of trading using opposite Lyra Therapeutics and Chimerix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Chimerix 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 Chimerix will offset losses from the drop in Chimerix's long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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