Correlation Between KRAFT and Spyre Therapeutics
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By analyzing existing cross correlation between KRAFT FOODS GROUP and Spyre Therapeutics, you can compare the effects of market volatilities on KRAFT and Spyre Therapeutics 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 KRAFT with a short position of Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KRAFT and Spyre Therapeutics.
Diversification Opportunities for KRAFT and Spyre Therapeutics
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KRAFT and Spyre is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding KRAFT FOODS GROUP and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and KRAFT 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 KRAFT FOODS GROUP are associated (or correlated) with Spyre Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spyre Therapeutics has no effect on the direction of KRAFT i.e., KRAFT and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between KRAFT and Spyre Therapeutics
Assuming the 90 days trading horizon KRAFT FOODS GROUP is expected to under-perform the Spyre Therapeutics. But the bond apears to be less risky and, when comparing its historical volatility, KRAFT FOODS GROUP is 4.93 times less risky than Spyre Therapeutics. The bond trades about -0.01 of its potential returns per unit of risk. The Spyre Therapeutics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,400 in Spyre Therapeutics on November 3, 2024 and sell it today you would lose (173.00) from holding Spyre Therapeutics or give up 7.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 83.0% |
| Values | Daily Returns |
KRAFT FOODS GROUP vs. Spyre Therapeutics
Performance |
| Timeline |
| KRAFT FOODS GROUP |
| Spyre Therapeutics |
KRAFT and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KRAFT and Spyre Therapeutics
The main advantage of trading using opposite KRAFT and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KRAFT position performs unexpectedly, Spyre Therapeutics 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 Spyre Therapeutics will offset losses from the drop in Spyre Therapeutics' long position.The idea behind KRAFT FOODS GROUP and Spyre Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Spyre Therapeutics vs. Monster Beverage Corp | Spyre Therapeutics vs. JBG SMITH Properties | Spyre Therapeutics vs. PepsiCo | Spyre Therapeutics vs. The Coca Cola |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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