Correlation Between Electrovaya Common and Spyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Electrovaya Common 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 Electrovaya Common and Spyre Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrovaya Common Shares and Spyre Therapeutics, you can compare the effects of market volatilities on Electrovaya Common 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 Electrovaya Common with a short position of Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and Spyre Therapeutics.
Diversification Opportunities for Electrovaya Common and Spyre Therapeutics
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electrovaya and Spyre is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and Electrovaya Common 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 Electrovaya Common Shares 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 Electrovaya Common i.e., Electrovaya Common and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between Electrovaya Common and Spyre Therapeutics
Given the investment horizon of 90 days Electrovaya Common Shares is expected to under-perform the Spyre Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Electrovaya Common Shares is 4.32 times less risky than Spyre Therapeutics. The stock trades about -0.01 of its potential returns per unit of risk. The Spyre Therapeutics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 940.00 in Spyre Therapeutics on August 30, 2024 and sell it today you would earn a total of 1,835 from holding Spyre Therapeutics or generate 195.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrovaya Common Shares vs. Spyre Therapeutics
Performance |
| Timeline |
| Electrovaya Common Shares |
| Spyre Therapeutics |
Electrovaya Common and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrovaya Common and Spyre Therapeutics
The main advantage of trading using opposite Electrovaya Common and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common 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.| Electrovaya Common vs. Bloom Energy Corp | Electrovaya Common vs. Microvast Holdings | Electrovaya Common vs. Solid Power | Electrovaya Common vs. Enovix Corp |
| Spyre Therapeutics vs. Ikena Oncology | Spyre Therapeutics vs. Eliem Therapeutics | Spyre Therapeutics vs. HCW Biologics | Spyre Therapeutics vs. RenovoRx |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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