Correlation Between Genfit and Spyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Genfit 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 Genfit and Spyre Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Spyre Therapeutics, you can compare the effects of market volatilities on Genfit 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 Genfit with a short position of Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Spyre Therapeutics.
Diversification Opportunities for Genfit and Spyre Therapeutics
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genfit and Spyre is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and Genfit 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 Genfit 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 Genfit i.e., Genfit and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between Genfit and Spyre Therapeutics
Given the investment horizon of 90 days Genfit is expected to generate 7.22 times less return on investment than Spyre Therapeutics. But when comparing it to its historical volatility, Genfit is 4.24 times less risky than Spyre Therapeutics. It trades about 0.03 of its potential returns per unit of risk. Spyre Therapeutics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,178 in Spyre Therapeutics on August 24, 2024 and sell it today you would earn a total of 1,592 from holding Spyre Therapeutics or generate 135.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Spyre Therapeutics
Performance |
| Timeline |
| Genfit |
| Spyre Therapeutics |
Genfit and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Spyre Therapeutics
The main advantage of trading using opposite Genfit and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit 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.| Genfit vs. Lyra Therapeutics | Genfit vs. Hookipa Pharma | Genfit vs. Cingulate Warrants | Genfit vs. SAB Biotherapeutics |
| Spyre Therapeutics vs. Paysafe | Spyre Therapeutics vs. Evertz Technologies Limited | Spyre Therapeutics vs. Bridgford Foods | Spyre Therapeutics vs. SunOpta |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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