Correlation Between Spyre Therapeutics and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Spyre Therapeutics and Eldorado Gold 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 Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spyre Therapeutics and Eldorado Gold Corp, you can compare the effects of market volatilities on Spyre Therapeutics and Eldorado Gold 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 Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spyre Therapeutics and Eldorado Gold.
Diversification Opportunities for Spyre Therapeutics and Eldorado Gold
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Spyre and Eldorado is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and Eldorado Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eldorado Gold Corp 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 Eldorado Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eldorado Gold Corp has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and Eldorado Gold go up and down completely randomly.
Pair Corralation between Spyre Therapeutics and Eldorado Gold
Given the investment horizon of 90 days Spyre Therapeutics is expected to under-perform the Eldorado Gold. In addition to that, Spyre Therapeutics is 1.47 times more volatile than Eldorado Gold Corp. It trades about -0.13 of its total potential returns per unit of risk. Eldorado Gold Corp is currently generating about -0.12 per unit of volatility. If you would invest 1,737 in Eldorado Gold Corp on September 1, 2024 and sell it today you would lose (137.00) from holding Eldorado Gold Corp or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spyre Therapeutics vs. Eldorado Gold Corp
Performance |
| Timeline |
| Spyre Therapeutics |
| Eldorado Gold Corp |
Spyre Therapeutics and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spyre Therapeutics and Eldorado Gold
The main advantage of trading using opposite Spyre Therapeutics and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spyre Therapeutics position performs unexpectedly, Eldorado Gold 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 Eldorado Gold will offset losses from the drop in Eldorado Gold's long position.| Spyre Therapeutics vs. Cue Biopharma | Spyre Therapeutics vs. Tff Pharmaceuticals | Spyre Therapeutics vs. Eliem Therapeutics | Spyre Therapeutics vs. Inhibrx |
| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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