Correlation Between Lyra Therapeutics and Viking Therapeutics
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Viking 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 Viking 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 Viking Therapeutics, you can compare the effects of market volatilities on Lyra Therapeutics and Viking 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 Viking Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Viking Therapeutics.
Diversification Opportunities for Lyra Therapeutics and Viking Therapeutics
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lyra and Viking is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Viking Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking 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 Viking Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Therapeutics has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Viking Therapeutics go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Viking Therapeutics
Given the investment horizon of 90 days Lyra Therapeutics is expected to generate 2.34 times more return on investment than Viking Therapeutics. However, Lyra Therapeutics is 2.34 times more volatile than Viking Therapeutics. It trades about -0.07 of its potential returns per unit of risk. Viking Therapeutics is currently generating about -0.2 per unit of risk. If you would invest 26.00 in Lyra Therapeutics on September 3, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyra Therapeutics vs. Viking Therapeutics
Performance |
| Timeline |
| Lyra Therapeutics |
| Viking Therapeutics |
Lyra Therapeutics and Viking Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyra Therapeutics and Viking Therapeutics
The main advantage of trading using opposite Lyra Therapeutics and Viking Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Viking 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 Viking Therapeutics will offset losses from the drop in Viking Therapeutics' long position.| Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
| Viking Therapeutics vs. DiaMedica Therapeutics | Viking Therapeutics vs. Lyra Therapeutics | Viking 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |