Correlation Between Lyra Therapeutics and Genelux Common
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Genelux Common 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 Genelux Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and Genelux Common, you can compare the effects of market volatilities on Lyra Therapeutics and Genelux Common 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 Genelux Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Genelux Common.
Diversification Opportunities for Lyra Therapeutics and Genelux Common
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyra and Genelux is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Genelux Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genelux Common 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 Genelux Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genelux Common has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Genelux Common go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Genelux Common
Given the investment horizon of 90 days Lyra Therapeutics is expected to generate 5.54 times less return on investment than Genelux Common. In addition to that, Lyra Therapeutics is 1.02 times more volatile than Genelux Common. It trades about 0.03 of its total potential returns per unit of risk. Genelux Common is currently generating about 0.15 per unit of volatility. If you would invest 256.00 in Genelux Common on October 25, 2024 and sell it today you would earn a total of 72.00 from holding Genelux Common or generate 28.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyra Therapeutics vs. Genelux Common
Performance |
| Timeline |
| Lyra Therapeutics |
| Genelux Common |
Lyra Therapeutics and Genelux Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and Genelux Common
The main advantage of trading using opposite Lyra Therapeutics and Genelux Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Genelux Common 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 Genelux Common will offset losses from the drop in Genelux Common's long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| Genelux Common vs. Dyadic International | Genelux Common vs. Cingulate | Genelux Common vs. Monopar Therapeutics | Genelux Common vs. Terns Pharmaceuticals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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