Correlation Between Spyre Therapeutics and Amgen
Can any of the company-specific risk be diversified away by investing in both Spyre Therapeutics and Amgen 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 Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spyre Therapeutics and Amgen Inc, you can compare the effects of market volatilities on Spyre Therapeutics and Amgen 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 Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spyre Therapeutics and Amgen.
Diversification Opportunities for Spyre Therapeutics and Amgen
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Spyre and Amgen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc 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 Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and Amgen go up and down completely randomly.
Pair Corralation between Spyre Therapeutics and Amgen
Given the investment horizon of 90 days Spyre Therapeutics is expected to generate 2.76 times more return on investment than Amgen. However, Spyre Therapeutics is 2.76 times more volatile than Amgen Inc. It trades about 0.03 of its potential returns per unit of risk. Amgen Inc is currently generating about 0.0 per unit of risk. If you would invest 2,591 in Spyre Therapeutics on August 28, 2024 and sell it today you would earn a total of 190.00 from holding Spyre Therapeutics or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spyre Therapeutics vs. Amgen Inc
Performance |
| Timeline |
| Spyre Therapeutics |
| Amgen Inc |
Spyre Therapeutics and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spyre Therapeutics and Amgen
The main advantage of trading using opposite Spyre Therapeutics and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spyre Therapeutics position performs unexpectedly, Amgen 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 Amgen will offset losses from the drop in Amgen's long position.| Spyre Therapeutics vs. EastGroup Properties | Spyre Therapeutics vs. Doubledown Interactive Co | Spyre Therapeutics vs. NetEase | Spyre Therapeutics vs. Playstudios |
| Amgen vs. Eliem Therapeutics | Amgen vs. HCW Biologics | Amgen vs. Scpharmaceuticals | Amgen 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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