Correlation Between Lyra Therapeutics and GH Research
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and GH Research 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 GH Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and GH Research PLC, you can compare the effects of market volatilities on Lyra Therapeutics and GH Research 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 GH Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and GH Research.
Diversification Opportunities for Lyra Therapeutics and GH Research
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lyra and GHRS is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and GH Research PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GH Research PLC 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 GH Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GH Research PLC has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and GH Research go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and GH Research
Given the investment horizon of 90 days Lyra Therapeutics is expected to under-perform the GH Research. In addition to that, Lyra Therapeutics is 1.39 times more volatile than GH Research PLC. It trades about -0.03 of its total potential returns per unit of risk. GH Research PLC is currently generating about -0.04 per unit of volatility. If you would invest 1,225 in GH Research PLC on September 3, 2024 and sell it today you would lose (332.00) from holding GH Research PLC or give up 27.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyra Therapeutics vs. GH Research PLC
Performance |
| Timeline |
| Lyra Therapeutics |
| GH Research PLC |
Lyra Therapeutics and GH Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and GH Research
The main advantage of trading using opposite Lyra Therapeutics and GH Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, GH Research 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 GH Research will offset losses from the drop in GH Research's long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| GH Research vs. DiaMedica Therapeutics | GH Research vs. Lyra Therapeutics | GH Research vs. Centessa Pharmaceuticals 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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