Correlation Between Amgen and Spyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Amgen and Spyre 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 Amgen and Spyre Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Spyre Therapeutics, you can compare the effects of market volatilities on Amgen and Spyre 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 Amgen with a short position of Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Spyre Therapeutics.
Diversification Opportunities for Amgen and Spyre Therapeutics
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amgen and Spyre is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and Amgen 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 Amgen Inc are associated (or correlated) with Spyre Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spyre Therapeutics has no effect on the direction of Amgen i.e., Amgen and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between Amgen and Spyre Therapeutics
Given the investment horizon of 90 days Amgen Inc is expected to generate 0.5 times more return on investment than Spyre Therapeutics. However, Amgen Inc is 2.01 times less risky than Spyre Therapeutics. It trades about -0.14 of its potential returns per unit of risk. Spyre Therapeutics is currently generating about -0.22 per unit of risk. If you would invest 31,465 in Amgen Inc on August 28, 2024 and sell it today you would lose (2,065) from holding Amgen Inc or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amgen Inc vs. Spyre Therapeutics
Performance |
| Timeline |
| Amgen Inc |
| Spyre Therapeutics |
Amgen and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Spyre Therapeutics
The main advantage of trading using opposite Amgen and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Spyre 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 Spyre Therapeutics will offset losses from the drop in Spyre Therapeutics' long position.| Amgen vs. Eliem Therapeutics | Amgen vs. HCW Biologics | Amgen vs. Scpharmaceuticals | Amgen vs. Milestone Pharmaceuticals |
| Spyre Therapeutics vs. Inter Parfums | Spyre Therapeutics vs. Kontoor Brands | Spyre Therapeutics vs. Vince Holding Corp | Spyre Therapeutics vs. Lincoln Electric Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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