Correlation Between Lyra Therapeutics and Cullinan Oncology

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

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

Diversification Opportunities for Lyra Therapeutics and Cullinan Oncology

0.58

Correlation Coefficient

Lyra Therapeutics  Cullinan Oncology

Very weak diversification

The 3 months correlation between Lyra and Cullinan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lyra Therapeutics and Cullinan Oncology LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullinan Oncology LLC 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 Cullinan Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullinan Oncology LLC has no effect on the direction of Lyra Therapeutics i.e., Lyra Therapeutics and Cullinan Oncology go up and down completely randomly.

Pair Corralation between Lyra Therapeutics and Cullinan Oncology

Given the investment horizon of 90 days Lyra Therapeutics is expected to generate 12.55 times more return on investment than Cullinan Oncology. However, Lyra Therapeutics is 12.55 times more volatile than Cullinan Oncology LLC. It trades about 0.09 of its potential returns per unit of risk. Cullinan Oncology LLC is currently generating about 0.04 per unit of risk. If you would invest  525.00  in Lyra Therapeutics on May 7, 2025 and sell it today you would earn a total of  150.00  from holding Lyra Therapeutics or generate 28.57% 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.  Cullinan Oncology LLC

Lyra Therapeutics

Risk-Adjusted Performance

Mild

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.

Cullinan Oncology LLC

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Cullinan Oncology LLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Cullinan Oncology may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Lyra Therapeutics and Cullinan Oncology

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

The idea behind Lyra Therapeutics and Cullinan Oncology LLC 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.