Correlation Between Spyre Therapeutics and BioNTech
Can any of the company-specific risk be diversified away by investing in both Spyre Therapeutics and BioNTech 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 BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spyre Therapeutics and BioNTech SE, you can compare the effects of market volatilities on Spyre Therapeutics and BioNTech 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 BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spyre Therapeutics and BioNTech.
Diversification Opportunities for Spyre Therapeutics and BioNTech
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Spyre and BioNTech is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE 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 BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and BioNTech go up and down completely randomly.
Pair Corralation between Spyre Therapeutics and BioNTech
Given the investment horizon of 90 days Spyre Therapeutics is expected to generate 6.96 times more return on investment than BioNTech. However, Spyre Therapeutics is 6.96 times more volatile than BioNTech SE. It trades about 0.07 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.02 per unit of risk. If you would invest 323.00 in Spyre Therapeutics on August 31, 2024 and sell it today you would earn a total of 2,520 from holding Spyre Therapeutics or generate 780.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spyre Therapeutics vs. BioNTech SE
Performance |
| Timeline |
| Spyre Therapeutics |
| BioNTech SE |
Spyre Therapeutics and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spyre Therapeutics and BioNTech
The main advantage of trading using opposite Spyre Therapeutics and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spyre Therapeutics position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech's long position.| Spyre Therapeutics vs. Tencent Music Entertainment | Spyre Therapeutics vs. Titan International | Spyre Therapeutics vs. Mills Music Trust | Spyre Therapeutics vs. FitLife Brands, Common |
| BioNTech vs. Cue Biopharma | BioNTech vs. Eliem Therapeutics | BioNTech vs. Inhibrx | BioNTech vs. Molecular Partners AG |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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