Correlation Between Lyra Therapeutics and Lipocine
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Lipocine 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 Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and Lipocine, you can compare the effects of market volatilities on Lyra Therapeutics and Lipocine 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 Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Lipocine.
Diversification Opportunities for Lyra Therapeutics and Lipocine
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyra and Lipocine is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine 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 Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Lipocine go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Lipocine
Given the investment horizon of 90 days Lyra Therapeutics is expected to under-perform the Lipocine. In addition to that, Lyra Therapeutics is 1.15 times more volatile than Lipocine. It trades about -0.03 of its total potential returns per unit of risk. Lipocine is currently generating about 0.01 per unit of volatility. If you would invest 696.00 in Lipocine on September 3, 2024 and sell it today you would lose (242.00) from holding Lipocine or give up 34.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyra Therapeutics vs. Lipocine
Performance |
| Timeline |
| Lyra Therapeutics |
| Lipocine |
Lyra Therapeutics and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and Lipocine
The main advantage of trading using opposite Lyra Therapeutics and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Lipocine 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 Lipocine will offset losses from the drop in Lipocine's long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| Lipocine vs. DiaMedica Therapeutics | Lipocine vs. Lyra Therapeutics | Lipocine 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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