Correlation Between Lyra Therapeutics and AGE Old

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

By analyzing existing cross correlation between Lyra Therapeutics and AGE Old, you can compare the effects of market volatilities on Lyra Therapeutics and AGE Old 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 AGE Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and AGE Old.

Diversification Opportunities for Lyra Therapeutics and AGE Old

0.0

Correlation Coefficient

Lyra Therapeutics  AGE Old

Pay attention - limited upside

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

Pair Corralation between Lyra Therapeutics and AGE Old

If you would invest  21.00  in Lyra Therapeutics on November 29, 2024 and sell it today you would lose (0.23) from holding Lyra Therapeutics or give up 1.1% of portfolio value over 90 days.

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

Lyra Therapeutics  vs.  AGE Old

Lyra Therapeutics

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lyra Therapeutics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Lyra Therapeutics is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

AGE Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGE Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, AGE Old is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Lyra Therapeutics and AGE Old

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

The idea behind Lyra Therapeutics and AGE Old 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.