Correlation Between Regeneron Pharmaceuticals and Spyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals and Spyre Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regeneron Pharmaceuticals and Spyre Therapeutics, you can compare the effects of market volatilities on Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals with a short position of Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regeneron Pharmaceuticals and Spyre Therapeutics.
Diversification Opportunities for Regeneron Pharmaceuticals and Spyre Therapeutics
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regeneron and Spyre is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Regeneron Pharmaceuticals and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals i.e., Regeneron Pharmaceuticals and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between Regeneron Pharmaceuticals and Spyre Therapeutics
Given the investment horizon of 90 days Regeneron Pharmaceuticals is expected to under-perform the Spyre Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Regeneron Pharmaceuticals is 2.8 times less risky than Spyre Therapeutics. The stock trades about -0.12 of its potential returns per unit of risk. The Spyre Therapeutics is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,405 in Spyre Therapeutics on August 28, 2024 and sell it today you would lose (624.00) from holding Spyre Therapeutics or give up 18.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regeneron Pharmaceuticals vs. Spyre Therapeutics
Performance |
| Timeline |
| Regeneron Pharmaceuticals |
| Spyre Therapeutics |
Regeneron Pharmaceuticals and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regeneron Pharmaceuticals and Spyre Therapeutics
The main advantage of trading using opposite Regeneron Pharmaceuticals and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regeneron Pharmaceuticals 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.| Regeneron Pharmaceuticals vs. Eliem Therapeutics | Regeneron Pharmaceuticals vs. Scpharmaceuticals | Regeneron Pharmaceuticals vs. Milestone Pharmaceuticals | Regeneron Pharmaceuticals vs. Seres Therapeutics |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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