Correlation Between Lyra Therapeutics and Immutep
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Immutep 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 Immutep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and Immutep Ltd ADR, you can compare the effects of market volatilities on Lyra Therapeutics and Immutep 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 Immutep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Immutep.
Diversification Opportunities for Lyra Therapeutics and Immutep
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lyra and Immutep is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Immutep Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutep Ltd ADR 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 Immutep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutep Ltd ADR has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Immutep go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Immutep
Given the investment horizon of 90 days Lyra Therapeutics is expected to under-perform the Immutep. In addition to that, Lyra Therapeutics is 1.32 times more volatile than Immutep Ltd ADR. It trades about -0.03 of its total potential returns per unit of risk. Immutep Ltd ADR is currently generating about 0.02 per unit of volatility. If you would invest 213.00 in Immutep Ltd ADR on September 3, 2024 and sell it today you would lose (8.00) from holding Immutep Ltd ADR or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Lyra Therapeutics vs. Immutep Ltd ADR
Performance |
| Timeline |
| Lyra Therapeutics |
| Immutep Ltd ADR |
Lyra Therapeutics and Immutep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and Immutep
The main advantage of trading using opposite Lyra Therapeutics and Immutep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Immutep 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 Immutep will offset losses from the drop in Immutep's long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| Immutep vs. Ocean Biomedical | Immutep vs. Elevation Oncology | Immutep vs. Zura Bio Limited | Immutep vs. Cns 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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