Correlation Between Lyra Therapeutics and Aclaris Therapeutics
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Aclaris 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 Aclaris 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 Aclaris Therapeutics, you can compare the effects of market volatilities on Lyra Therapeutics and Aclaris 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 Aclaris Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Aclaris Therapeutics.
Diversification Opportunities for Lyra Therapeutics and Aclaris Therapeutics
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lyra and Aclaris is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Aclaris Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aclaris 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 Aclaris Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aclaris Therapeutics has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Aclaris Therapeutics go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Aclaris Therapeutics
Given the investment horizon of 90 days Lyra Therapeutics is expected to generate 0.94 times more return on investment than Aclaris Therapeutics. However, Lyra Therapeutics is 1.06 times less risky than Aclaris Therapeutics. It trades about -0.03 of its potential returns per unit of risk. Aclaris Therapeutics is currently generating about -0.26 per unit of risk. If you would invest 19.00 in Lyra Therapeutics on September 25, 2024 and sell it today you would lose (1.00) from holding Lyra Therapeutics or give up 5.26% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Lyra Therapeutics vs. Aclaris Therapeutics
Performance |
Timeline |
Lyra Therapeutics |
Aclaris Therapeutics |
Lyra Therapeutics and Aclaris Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyra Therapeutics and Aclaris Therapeutics
The main advantage of trading using opposite Lyra Therapeutics and Aclaris Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Aclaris 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 Aclaris Therapeutics will offset losses from the drop in Aclaris Therapeutics' long position.Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
Aclaris Therapeutics vs. Oric Pharmaceuticals | Aclaris Therapeutics vs. Lyra Therapeutics | Aclaris Therapeutics vs. Inhibrx | Aclaris Therapeutics vs. ESSA Pharma |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |