Correlation Between Western Union and Spyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Western Union and Spyre Therapeutics 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 Western Union and Spyre Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Union Co and Spyre Therapeutics, you can compare the effects of market volatilities on Western Union 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 Western Union with a short position of Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Union and Spyre Therapeutics.
Diversification Opportunities for Western Union and Spyre Therapeutics
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Spyre is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Western Union Co and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and Western Union 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 Western Union Co 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 Western Union i.e., Western Union and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between Western Union and Spyre Therapeutics
Allowing for the 90-day total investment horizon Western Union Co is expected to generate 0.29 times more return on investment than Spyre Therapeutics. However, Western Union Co is 3.41 times less risky than Spyre Therapeutics. It trades about 0.11 of its potential returns per unit of risk. Spyre Therapeutics is currently generating about -0.36 per unit of risk. If you would invest 1,061 in Western Union Co on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Western Union Co or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Union Co vs. Spyre Therapeutics
Performance |
| Timeline |
| Western Union |
| Spyre Therapeutics |
Western Union and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Union and Spyre Therapeutics
The main advantage of trading using opposite Western Union and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Union 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.| Western Union vs. Navient Corp | Western Union vs. Green Dot | Western Union vs. Orix Corp Ads | Western Union vs. FirstCash |
| Spyre Therapeutics vs. Apogee Enterprises | Spyre Therapeutics vs. Kenon Holdings | Spyre Therapeutics vs. Hafnia Limited | Spyre Therapeutics vs. Saia Inc |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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