Correlation Between PepGen and Lyra TherapeuticsInc

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

By analyzing existing cross correlation between PepGen and Lyra TherapeuticsInc, you can compare the effects of market volatilities on PepGen and Lyra TherapeuticsInc 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 PepGen with a short position of Lyra TherapeuticsInc. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Lyra TherapeuticsInc.

Diversification Opportunities for PepGen and Lyra TherapeuticsInc

0.05

Correlation Coefficient

PepGen  Lyra TherapeuticsInc

Significant diversification

The 3 months correlation between PepGen and Lyra is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Lyra TherapeuticsInc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyra TherapeuticsInc and PepGen 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 PepGen are associated (or correlated) with Lyra TherapeuticsInc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyra TherapeuticsInc has no effect on the direction of PepGen i.e., PepGen and Lyra TherapeuticsInc go up and down completely randomly.

Pair Corralation between PepGen and Lyra TherapeuticsInc

Given the investment horizon of 90 days PepGen is expected to generate 0.28 times more return on investment than Lyra TherapeuticsInc. However, PepGen is 3.54 times less risky than Lyra TherapeuticsInc. It trades about 0.09 of its potential returns per unit of risk. Lyra TherapeuticsInc is currently generating about -0.35 per unit of risk. If you would invest  1,259  in PepGen on February 16, 2024 and sell it today you would earn a total of  95.00  from holding PepGen or generate 7.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PepGen  vs.  Lyra TherapeuticsInc

PepGen

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PepGen are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, PepGen may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Lyra TherapeuticsInc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lyra TherapeuticsInc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with PepGen and Lyra TherapeuticsInc

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

The idea behind PepGen and Lyra TherapeuticsInc 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.