Correlation Between Harpoon Therapeutics and Lyell Immunopharma

Can any of the company-specific risk be diversified away by investing in both Harpoon Therapeutics and Lyell Immunopharma 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 Harpoon Therapeutics and Lyell Immunopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Harpoon Therapeutics and Lyell Immunopharma, you can compare the effects of market volatilities on Harpoon Therapeutics and Lyell Immunopharma 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 Harpoon Therapeutics with a short position of Lyell Immunopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harpoon Therapeutics and Lyell Immunopharma.

Diversification Opportunities for Harpoon Therapeutics and Lyell Immunopharma

0.0

Correlation Coefficient

Harpoon Therapeutics  Lyell Immunopharma

Pay attention - limited upside

The 3 months correlation between Harpoon and Lyell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harpoon Therapeutics and Lyell Immunopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyell Immunopharma and Harpoon 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 Harpoon Therapeutics are associated (or correlated) with Lyell Immunopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyell Immunopharma has no effect on the direction of Harpoon Therapeutics i.e., Harpoon Therapeutics and Lyell Immunopharma go up and down completely randomly.

Pair Corralation between Harpoon Therapeutics and Lyell Immunopharma

If you would invest  62.00  in Lyell Immunopharma on December 29, 2024 and sell it today you would lose (3.00) from holding Lyell Immunopharma or give up 4.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Harpoon Therapeutics  vs.  Lyell Immunopharma

Harpoon Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harpoon Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Harpoon Therapeutics is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Lyell Immunopharma

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lyell Immunopharma has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Lyell Immunopharma is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Harpoon Therapeutics and Lyell Immunopharma

The main advantage of trading using opposite Harpoon Therapeutics and Lyell Immunopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harpoon Therapeutics position performs unexpectedly, Lyell Immunopharma 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 Lyell Immunopharma will offset losses from the drop in Lyell Immunopharma's long position.

The idea behind Harpoon Therapeutics and Lyell Immunopharma pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.