Correlation Between Lyra Therapeutics and Exicure
Can any of the company-specific risk be diversified away by investing in both Lyra Therapeutics and Exicure 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 Exicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyra Therapeutics and Exicure, you can compare the effects of market volatilities on Lyra Therapeutics and Exicure 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 Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyra Therapeutics and Exicure.
Diversification Opportunities for Lyra Therapeutics and Exicure
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyra and Exicure is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure 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 Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Exicure go up and down completely randomly.
Pair Corralation between Lyra Therapeutics and Exicure
Given the investment horizon of 90 days Lyra Therapeutics is expected to under-perform the Exicure. But the stock apears to be less risky and, when comparing its historical volatility, Lyra Therapeutics is 2.98 times less risky than Exicure. The stock trades about -0.14 of its potential returns per unit of risk. The Exicure is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,615 in Exicure on December 28, 2024 and sell it today you would lose (215.00) from holding Exicure or give up 13.31% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lyra Therapeutics vs. Exicure
Performance |
Timeline |
Lyra Therapeutics |
Exicure |
Lyra Therapeutics and Exicure Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyra Therapeutics and Exicure
The main advantage of trading using opposite Lyra Therapeutics and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyra Therapeutics position performs unexpectedly, Exicure 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 Exicure will offset losses from the drop in Exicure's long position.Lyra Therapeutics vs. Day One Biopharmaceuticals | Lyra Therapeutics vs. Mirum Pharmaceuticals | Lyra Therapeutics vs. Rocket Pharmaceuticals | Lyra Therapeutics vs. Avidity Biosciences |
Exicure vs. Ikena Oncology | Exicure vs. HCW Biologics | Exicure vs. RenovoRx | Exicure vs. Tempest 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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