Correlation Between Lyra Therapeutics and Iovance Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Iovance Biotherapeutics 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 Iovance Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and Iovance Biotherapeutics, you can compare the effects of market volatilities on Lyra Therapeutics and Iovance Biotherapeutics 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 Iovance Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Iovance Biotherapeutics.
Diversification Opportunities for Lyra Therapeutics and Iovance Biotherapeutics
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyra and Iovance is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Iovance Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iovance Biotherapeutics 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 Iovance Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iovance Biotherapeutics has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Iovance Biotherapeutics go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Iovance Biotherapeutics
Given the investment horizon of 90 days Lyra Therapeutics is expected to under-perform the Iovance Biotherapeutics. In addition to that, Lyra Therapeutics is 1.17 times more volatile than Iovance Biotherapeutics. It trades about -0.04 of its total potential returns per unit of risk. Iovance Biotherapeutics is currently generating about 0.03 per unit of volatility. If you would invest 803.00 in Iovance Biotherapeutics on August 24, 2024 and sell it today you would earn a total of 52.00 from holding Iovance Biotherapeutics or generate 6.48% 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. Iovance Biotherapeutics
Performance |
| Timeline |
| Lyra Therapeutics |
| Iovance Biotherapeutics |
Lyra Therapeutics and Iovance Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and Iovance Biotherapeutics
The main advantage of trading using opposite Lyra Therapeutics and Iovance Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Iovance Biotherapeutics 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 Iovance Biotherapeutics will offset losses from the drop in Iovance Biotherapeutics' long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| Iovance Biotherapeutics vs. PTC Therapeutics | Iovance Biotherapeutics vs. Krystal Biotech | Iovance Biotherapeutics vs. Sarepta Therapeutics | Iovance Biotherapeutics vs. Madrigal 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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