Correlation Between Citigroup and Spyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Citigroup 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 Citigroup and Spyre Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Spyre Therapeutics, you can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Spyre Therapeutics.
Diversification Opportunities for Citigroup and Spyre Therapeutics
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Spyre is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and Citigroup 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 Citigroup 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 Citigroup i.e., Citigroup and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between Citigroup and Spyre Therapeutics
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.38 times more return on investment than Spyre Therapeutics. However, Citigroup is 2.64 times less risky than Spyre Therapeutics. It trades about 0.09 of its potential returns per unit of risk. Spyre Therapeutics is currently generating about 0.02 per unit of risk. If you would invest 5,401 in Citigroup on August 27, 2024 and sell it today you would earn a total of 1,583 from holding Citigroup or generate 29.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Spyre Therapeutics
Performance |
| Timeline |
| Citigroup |
| Spyre Therapeutics |
Citigroup and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Spyre Therapeutics
The main advantage of trading using opposite Citigroup and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Spyre Therapeutics vs. Eliem Therapeutics | Spyre Therapeutics vs. HCW Biologics | Spyre Therapeutics vs. Scpharmaceuticals | Spyre Therapeutics vs. Milestone Pharmaceuticals |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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