Correlation Between Steven Madden and Spyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Steven Madden 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 Steven Madden and Spyre Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steven Madden and Spyre Therapeutics, you can compare the effects of market volatilities on Steven Madden 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 Steven Madden with a short position of Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steven Madden and Spyre Therapeutics.
Diversification Opportunities for Steven Madden and Spyre Therapeutics
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Steven and Spyre is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Steven Madden and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and Steven Madden 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 Steven Madden 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 Steven Madden i.e., Steven Madden and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between Steven Madden and Spyre Therapeutics
Given the investment horizon of 90 days Steven Madden is expected to generate 2.68 times less return on investment than Spyre Therapeutics. But when comparing it to its historical volatility, Steven Madden is 3.03 times less risky than Spyre Therapeutics. It trades about 0.06 of its potential returns per unit of risk. Spyre Therapeutics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,498 in Spyre Therapeutics on September 12, 2024 and sell it today you would earn a total of 1,151 from holding Spyre Therapeutics or generate 76.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steven Madden vs. Spyre Therapeutics
Performance |
| Timeline |
| Steven Madden |
| Spyre Therapeutics |
Steven Madden and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steven Madden and Spyre Therapeutics
The main advantage of trading using opposite Steven Madden and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steven Madden 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.| Steven Madden vs. Weyco Group | Steven Madden vs. Caleres | Steven Madden vs. Rocky Brands | Steven Madden vs. Designer Brands |
| Spyre Therapeutics vs. Lincoln Electric Holdings | Spyre Therapeutics vs. Sligro Food Group | Spyre Therapeutics vs. Steven Madden | Spyre Therapeutics vs. Weyco Group |
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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