Correlation Between Spyre Therapeutics and Asbury Automotive
Can any of the company-specific risk be diversified away by investing in both Spyre Therapeutics and Asbury Automotive 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 Spyre Therapeutics and Asbury Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spyre Therapeutics and Asbury Automotive Group, you can compare the effects of market volatilities on Spyre Therapeutics and Asbury Automotive 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 Spyre Therapeutics with a short position of Asbury Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spyre Therapeutics and Asbury Automotive.
Diversification Opportunities for Spyre Therapeutics and Asbury Automotive
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Spyre and Asbury is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and Asbury Automotive Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asbury Automotive and Spyre Therapeutics 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 Spyre Therapeutics are associated (or correlated) with Asbury Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asbury Automotive has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and Asbury Automotive go up and down completely randomly.
Pair Corralation between Spyre Therapeutics and Asbury Automotive
Given the investment horizon of 90 days Spyre Therapeutics is expected to generate 6.73 times more return on investment than Asbury Automotive. However, Spyre Therapeutics is 6.73 times more volatile than Asbury Automotive Group. It trades about 0.05 of its potential returns per unit of risk. Asbury Automotive Group is currently generating about 0.05 per unit of risk. If you would invest 975.00 in Spyre Therapeutics on September 3, 2024 and sell it today you would earn a total of 1,868 from holding Spyre Therapeutics or generate 191.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spyre Therapeutics vs. Asbury Automotive Group
Performance |
| Timeline |
| Spyre Therapeutics |
| Asbury Automotive |
Spyre Therapeutics and Asbury Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spyre Therapeutics and Asbury Automotive
The main advantage of trading using opposite Spyre Therapeutics and Asbury Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spyre Therapeutics position performs unexpectedly, Asbury Automotive 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 Asbury Automotive will offset losses from the drop in Asbury Automotive's long position.| Spyre Therapeutics vs. DiaMedica Therapeutics | Spyre Therapeutics vs. Lyra Therapeutics | Spyre Therapeutics vs. Centessa Pharmaceuticals PLC |
| Asbury Automotive vs. Sonic Automotive | Asbury Automotive vs. Lithia Motors | Asbury Automotive vs. AutoNation | Asbury Automotive vs. Penske Automotive 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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