Correlation Between Golden Energy and Spyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Golden Energy 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 Golden Energy and Spyre Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Energy Offshore and Spyre Therapeutics, you can compare the effects of market volatilities on Golden Energy 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 Golden Energy with a short position of Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Energy and Spyre Therapeutics.
Diversification Opportunities for Golden Energy and Spyre Therapeutics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Golden and Spyre is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Golden Energy Offshore and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and Golden Energy 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 Golden Energy Offshore 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 Golden Energy i.e., Golden Energy and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between Golden Energy and Spyre Therapeutics
Assuming the 90 days horizon Golden Energy Offshore is expected to generate 0.21 times more return on investment than Spyre Therapeutics. However, Golden Energy Offshore is 4.79 times less risky than Spyre Therapeutics. It trades about 0.24 of its potential returns per unit of risk. Spyre Therapeutics is currently generating about -0.19 per unit of risk. If you would invest 162.00 in Golden Energy Offshore on October 30, 2024 and sell it today you would earn a total of 13.00 from holding Golden Energy Offshore or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 92.68% |
| Values | Daily Returns |
Golden Energy Offshore vs. Spyre Therapeutics
Performance |
| Timeline |
| Golden Energy Offshore |
| Spyre Therapeutics |
Golden Energy and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Energy and Spyre Therapeutics
The main advantage of trading using opposite Golden Energy and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Energy 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.| Golden Energy vs. Summit Materials | Golden Energy vs. Centessa Pharmaceuticals PLC | Golden Energy vs. Catalyst Pharmaceuticals | Golden Energy vs. Molecular Partners AG |
| Spyre Therapeutics vs. Autohome | Spyre Therapeutics vs. Capital Clean Energy | Spyre Therapeutics vs. China Clean Energy | Spyre Therapeutics vs. City Office REIT |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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