Correlation Between VectivBio Holding and Lyra Therapeutics
Can any of the company-specific risk be diversified away by investing in both VectivBio Holding and Lyra 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 VectivBio Holding and Lyra Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VectivBio Holding AG and Lyra Therapeutics, you can compare the effects of market volatilities on VectivBio Holding and Lyra 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 VectivBio Holding with a short position of Lyra Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of VectivBio Holding and Lyra Therapeutics.
Diversification Opportunities for VectivBio Holding and Lyra Therapeutics
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VectivBio and Lyra is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding VectivBio Holding AG and Lyra Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyra Therapeutics and VectivBio Holding 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 VectivBio Holding AG are associated (or correlated) with Lyra Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyra Therapeutics has no effect on the direction of VectivBio Holding i.e., VectivBio Holding and Lyra Therapeutics go up and down completely randomly.
Pair Corralation between VectivBio Holding and Lyra Therapeutics
If you would invest 1,685 in VectivBio Holding AG on August 28, 2024 and sell it today you would earn a total of 0.00 from holding VectivBio Holding AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
VectivBio Holding AG vs. Lyra Therapeutics
Performance |
| Timeline |
| VectivBio Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lyra Therapeutics |
VectivBio Holding and Lyra Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VectivBio Holding and Lyra Therapeutics
The main advantage of trading using opposite VectivBio Holding and Lyra Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VectivBio Holding position performs unexpectedly, Lyra 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 Lyra Therapeutics will offset losses from the drop in Lyra Therapeutics' long position.| VectivBio Holding vs. Cns Pharmaceuticals | VectivBio Holding vs. ZyVersa Therapeutics | VectivBio Holding vs. Immix Biopharma | VectivBio Holding vs. Hepion Pharmaceuticals |
| Lyra Therapeutics vs. Eliem Therapeutics | Lyra Therapeutics vs. HCW Biologics | Lyra Therapeutics vs. Scpharmaceuticals | Lyra Therapeutics vs. Milestone Pharmaceuticals |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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