Correlation Between Lyra Therapeutics and Syndax Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Syndax Pharmaceuticals 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 Syndax Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and Syndax Pharmaceuticals, you can compare the effects of market volatilities on Lyra Therapeutics and Syndax Pharmaceuticals 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 Syndax Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Syndax Pharmaceuticals.
Diversification Opportunities for Lyra Therapeutics and Syndax Pharmaceuticals
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyra and Syndax is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Syndax Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syndax Pharmaceuticals 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 Syndax Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syndax Pharmaceuticals has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Syndax Pharmaceuticals go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Syndax Pharmaceuticals
Given the investment horizon of 90 days Lyra Therapeutics is expected to generate 1.91 times more return on investment than Syndax Pharmaceuticals. However, Lyra Therapeutics is 1.91 times more volatile than Syndax Pharmaceuticals. It trades about 0.13 of its potential returns per unit of risk. Syndax Pharmaceuticals is currently generating about 0.04 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyra Therapeutics vs. Syndax Pharmaceuticals
Performance |
| Timeline |
| Lyra Therapeutics |
| Syndax Pharmaceuticals |
Lyra Therapeutics and Syndax Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and Syndax Pharmaceuticals
The main advantage of trading using opposite Lyra Therapeutics and Syndax Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Syndax Pharmaceuticals 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 Syndax Pharmaceuticals will offset losses from the drop in Syndax Pharmaceuticals' long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| Syndax Pharmaceuticals vs. Cogent Biosciences | Syndax Pharmaceuticals vs. Cullinan Oncology LLC | Syndax Pharmaceuticals vs. Kalvista Pharmaceuticals | Syndax Pharmaceuticals vs. Mersana 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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