Correlation Between Lyra Therapeutics and Silence Therapeutics
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Silence 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 Silence 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 Silence Therapeutics PLC, you can compare the effects of market volatilities on Lyra Therapeutics and Silence 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 Silence Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Silence Therapeutics.
Diversification Opportunities for Lyra Therapeutics and Silence Therapeutics
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyra and Silence is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Silence Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silence Therapeutics PLC 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 Silence Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silence Therapeutics PLC has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Silence Therapeutics go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Silence Therapeutics
Given the investment horizon of 90 days Lyra Therapeutics is expected to generate 0.94 times more return on investment than Silence Therapeutics. However, Lyra Therapeutics is 1.07 times less risky than Silence Therapeutics. It trades about -0.07 of its potential returns per unit of risk. Silence Therapeutics PLC is currently generating about -0.33 per unit of risk. If you would invest 26.00 in Lyra Therapeutics on September 4, 2024 and sell it today you would lose (5.00) from holding Lyra Therapeutics or give up 19.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyra Therapeutics vs. Silence Therapeutics PLC
Performance |
| Timeline |
| Lyra Therapeutics |
| Silence Therapeutics PLC |
Lyra Therapeutics and Silence Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and Silence Therapeutics
The main advantage of trading using opposite Lyra Therapeutics and Silence Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Silence 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 Silence Therapeutics will offset losses from the drop in Silence Therapeutics' long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| Silence Therapeutics vs. Candel Therapeutics | Silence Therapeutics vs. Cingulate Warrants | Silence Therapeutics vs. Unicycive Therapeutics | Silence Therapeutics vs. Quoin Pharmaceuticals Ltd |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |