Correlation Between Lyra Therapeutics and GRPH Old
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and GRPH Old 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 GRPH Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and GRPH Old, you can compare the effects of market volatilities on Lyra Therapeutics and GRPH Old 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 GRPH Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and GRPH Old.
Diversification Opportunities for Lyra Therapeutics and GRPH Old
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyra and GRPH is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and GRPH Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRPH Old 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 GRPH Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRPH Old has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and GRPH Old go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and GRPH Old
If you would invest 267.00 in GRPH Old on October 25, 2024 and sell it today you would earn a total of 0.00 from holding GRPH Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.32% |
| Values | Daily Returns |
Lyra Therapeutics vs. GRPH Old
Performance |
| Timeline |
| Lyra Therapeutics |
| GRPH Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lyra Therapeutics and GRPH Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and GRPH Old
The main advantage of trading using opposite Lyra Therapeutics and GRPH Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, GRPH Old 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 GRPH Old will offset losses from the drop in GRPH Old's long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| GRPH Old vs. Assembly Biosciences | GRPH Old vs. Instil Bio | GRPH Old vs. Nuvation Bio | GRPH Old 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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