Correlation Between Lyra Therapeutics and Tastemaker Acquisition

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

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

Diversification Opportunities for Lyra Therapeutics and Tastemaker Acquisition

0.0

Correlation Coefficient

Lyra Therapeutics  Tastemaker Acquisition

Pay attention - limited upside

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

Pair Corralation between Lyra Therapeutics and Tastemaker Acquisition

If you would invest (100.00) in Tastemaker Acquisition Corp on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Tastemaker Acquisition Corp or generate -100.0% return on investment over 90 days.

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

Lyra Therapeutics  vs.  Tastemaker Acquisition Corp

Lyra Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lyra Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Tastemaker Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tastemaker Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Tastemaker Acquisition is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lyra Therapeutics and Tastemaker Acquisition

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

The idea behind Lyra Therapeutics and Tastemaker Acquisition Corp 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.