Correlation Between PennantPark Investment and Spyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment 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 PennantPark Investment and Spyre Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and Spyre Therapeutics, you can compare the effects of market volatilities on PennantPark Investment 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 PennantPark Investment with a short position of Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and Spyre Therapeutics.
Diversification Opportunities for PennantPark Investment and Spyre Therapeutics
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PennantPark and Spyre is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and PennantPark Investment 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 PennantPark Investment 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 PennantPark Investment i.e., PennantPark Investment and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between PennantPark Investment and Spyre Therapeutics
Given the investment horizon of 90 days PennantPark Investment is expected to generate 0.32 times more return on investment than Spyre Therapeutics. However, PennantPark Investment is 3.11 times less risky than Spyre Therapeutics. It trades about 0.02 of its potential returns per unit of risk. Spyre Therapeutics is currently generating about -0.22 per unit of risk. If you would invest 695.00 in PennantPark Investment on August 27, 2024 and sell it today you would earn a total of 3.00 from holding PennantPark Investment or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Investment vs. Spyre Therapeutics
Performance |
| Timeline |
| PennantPark Investment |
| Spyre Therapeutics |
PennantPark Investment and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and Spyre Therapeutics
The main advantage of trading using opposite PennantPark Investment and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment 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.| PennantPark Investment vs. PowerUp Acquisition Corp | PennantPark Investment vs. Aurora Innovation | PennantPark Investment vs. HUMANA INC | PennantPark Investment vs. Aquagold International |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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