Correlation Between Lyra Therapeutics and Replimune
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Replimune 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 Replimune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and Replimune Group, you can compare the effects of market volatilities on Lyra Therapeutics and Replimune 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 Replimune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Replimune.
Diversification Opportunities for Lyra Therapeutics and Replimune
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lyra and Replimune is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Replimune Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Replimune Group 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 Replimune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Replimune Group has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Replimune go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Replimune
Given the investment horizon of 90 days Lyra Therapeutics is expected to generate 1.87 times more return on investment than Replimune. However, Lyra Therapeutics is 1.87 times more volatile than Replimune Group. It trades about 0.13 of its potential returns per unit of risk. Replimune Group is currently generating about -0.27 per unit of risk. If you would invest 17.00 in Lyra Therapeutics on October 20, 2024 and sell it today you would earn a total of 2.00 from holding Lyra Therapeutics or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyra Therapeutics vs. Replimune Group
Performance |
| Timeline |
| Lyra Therapeutics |
| Replimune Group |
Lyra Therapeutics and Replimune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and Replimune
The main advantage of trading using opposite Lyra Therapeutics and Replimune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Replimune 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 Replimune will offset losses from the drop in Replimune's long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| Replimune vs. Nuvalent | Replimune vs. Ventyx Biosciences | Replimune vs. Ascendis Pharma AS | Replimune vs. United Therapeutics |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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