Correlation Between Lyra Therapeutics and Kymera Therapeutics
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Kymera Therapeutics 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 Kymera Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and Kymera Therapeutics, you can compare the effects of market volatilities on Lyra Therapeutics and Kymera Therapeutics 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 Kymera Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Kymera Therapeutics.
Diversification Opportunities for Lyra Therapeutics and Kymera Therapeutics
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lyra and Kymera is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Kymera Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kymera Therapeutics 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 Kymera Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kymera Therapeutics has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Kymera Therapeutics go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Kymera Therapeutics
Given the investment horizon of 90 days Lyra Therapeutics is expected to under-perform the Kymera Therapeutics. In addition to that, Lyra Therapeutics is 1.49 times more volatile than Kymera Therapeutics. It trades about -0.03 of its total potential returns per unit of risk. Kymera Therapeutics is currently generating about 0.05 per unit of volatility. If you would invest 2,585 in Kymera Therapeutics on September 3, 2024 and sell it today you would earn a total of 2,100 from holding Kymera Therapeutics or generate 81.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyra Therapeutics vs. Kymera Therapeutics
Performance |
| Timeline |
| Lyra Therapeutics |
| Kymera Therapeutics |
Lyra Therapeutics and Kymera Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and Kymera Therapeutics
The main advantage of trading using opposite Lyra Therapeutics and Kymera Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Kymera Therapeutics 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 Kymera Therapeutics will offset losses from the drop in Kymera Therapeutics' long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| Kymera Therapeutics vs. DiaMedica Therapeutics | Kymera Therapeutics vs. Lyra Therapeutics | Kymera Therapeutics 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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