Correlation Between Lyra Therapeutics and Autolus Therapeutics

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

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

Diversification Opportunities for Lyra Therapeutics and Autolus Therapeutics

0.42

Correlation Coefficient

Lyra Therapeutics  Autolus Therapeutics

Very weak diversification

The 3 months correlation between Lyra and Autolus is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Autolus Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autolus Therapeutics 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 Autolus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autolus Therapeutics has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Autolus Therapeutics go up and down completely randomly.

Pair Corralation between Lyra Therapeutics and Autolus Therapeutics

Given the investment horizon of 90 days Lyra Therapeutics is expected to generate 9.33 times more return on investment than Autolus Therapeutics. However, Lyra Therapeutics is 9.33 times more volatile than Autolus Therapeutics. It trades about 0.09 of its potential returns per unit of risk. Autolus Therapeutics is currently generating about 0.23 per unit of risk. If you would invest  520.00  in Lyra Therapeutics on May 5, 2025 and sell it today you would earn a total of  138.00  from holding Lyra Therapeutics or generate 26.54% return on investment over 90 days.

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

Lyra Therapeutics  vs.  Autolus Therapeutics

Lyra Therapeutics

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Lyra Therapeutics are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Lyra Therapeutics sustained solid returns over the last few months and may actually be approaching a breakup point.

Autolus Therapeutics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Autolus Therapeutics are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Autolus Therapeutics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lyra Therapeutics and Autolus Therapeutics

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

The idea behind Lyra Therapeutics and Autolus Therapeutics 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.