Correlation Between Lyra Therapeutics and Erasca
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Erasca 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 Erasca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and Erasca Inc, you can compare the effects of market volatilities on Lyra Therapeutics and Erasca 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 Erasca. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Erasca.
Diversification Opportunities for Lyra Therapeutics and Erasca
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lyra and Erasca is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Erasca Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erasca Inc 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 Erasca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erasca Inc has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Erasca go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Erasca
Given the investment horizon of 90 days Lyra Therapeutics is expected to generate 0.86 times more return on investment than Erasca. However, Lyra Therapeutics is 1.16 times less risky than Erasca. It trades about 0.24 of its potential returns per unit of risk. Erasca Inc is currently generating about -0.38 per unit of risk. If you would invest 18.00 in Lyra Therapeutics on December 1, 2024 and sell it today you would earn a total of 3.00 from holding Lyra Therapeutics or generate 16.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Lyra Therapeutics vs. Erasca Inc
Performance |
Timeline |
Lyra Therapeutics |
Erasca Inc |
Lyra Therapeutics and Erasca Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyra Therapeutics and Erasca
The main advantage of trading using opposite Lyra Therapeutics and Erasca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Erasca 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 Erasca will offset losses from the drop in Erasca's long position.Lyra Therapeutics vs. CytomX Therapeutics | Lyra Therapeutics vs. Assembly Biosciences | Lyra Therapeutics vs. Achilles Therapeutics PLC | Lyra Therapeutics vs. Instil Bio |
Erasca vs. Century Therapeutics | Erasca vs. Keros Therapeutics | Erasca vs. Monte Rosa Therapeutics | Erasca vs. Design Therapeutics |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |