Correlation Between Spyre Therapeutics and Genfit
Can any of the company-specific risk be diversified away by investing in both Spyre Therapeutics and Genfit 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 Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spyre Therapeutics and Genfit, you can compare the effects of market volatilities on Spyre Therapeutics and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spyre Therapeutics and Genfit.
Diversification Opportunities for Spyre Therapeutics and Genfit
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spyre and Genfit is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and Genfit go up and down completely randomly.
Pair Corralation between Spyre Therapeutics and Genfit
Given the investment horizon of 90 days Spyre Therapeutics is expected to generate 4.24 times more return on investment than Genfit. However, Spyre Therapeutics is 4.24 times more volatile than Genfit. It trades about 0.05 of its potential returns per unit of risk. Genfit is currently generating about 0.03 per unit of risk. If you would invest 1,093 in Spyre Therapeutics on August 28, 2024 and sell it today you would earn a total of 1,688 from holding Spyre Therapeutics or generate 154.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spyre Therapeutics vs. Genfit
Performance |
| Timeline |
| Spyre Therapeutics |
| Genfit |
Spyre Therapeutics and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spyre Therapeutics and Genfit
The main advantage of trading using opposite Spyre Therapeutics and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spyre Therapeutics position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit's long position.| Spyre Therapeutics vs. Inter Parfums | Spyre Therapeutics vs. Kontoor Brands | Spyre Therapeutics vs. Vince Holding Corp | Spyre Therapeutics vs. Lincoln Electric Holdings |
| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Scpharmaceuticals | Genfit 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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