Correlation Between Kenon Holdings and Spyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Kenon Holdings 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 Kenon Holdings and Spyre Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kenon Holdings and Spyre Therapeutics, you can compare the effects of market volatilities on Kenon Holdings 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 Kenon Holdings with a short position of Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and Spyre Therapeutics.
Diversification Opportunities for Kenon Holdings and Spyre Therapeutics
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kenon and Spyre is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and Kenon Holdings 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 Kenon Holdings 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 Kenon Holdings i.e., Kenon Holdings and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between Kenon Holdings and Spyre Therapeutics
Considering the 90-day investment horizon Kenon Holdings is expected to generate 0.48 times more return on investment than Spyre Therapeutics. However, Kenon Holdings is 2.09 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 -0.37 per unit of risk. If you would invest 2,889 in Kenon Holdings on September 14, 2024 and sell it today you would earn a total of 159.00 from holding Kenon Holdings or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kenon Holdings vs. Spyre Therapeutics
Performance |
| Timeline |
| Kenon Holdings |
| Spyre Therapeutics |
Kenon Holdings and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kenon Holdings and Spyre Therapeutics
The main advantage of trading using opposite Kenon Holdings and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kenon Holdings 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.| Kenon Holdings vs. Vistra Energy Corp | Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. TransAlta Corp |
| Spyre Therapeutics vs. Puma Biotechnology | Spyre Therapeutics vs. Iovance Biotherapeutics | Spyre Therapeutics vs. Sarepta Therapeutics | Spyre Therapeutics vs. Day One Biopharmaceuticals |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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