Correlation Between Comstock Holding and Spyre Therapeutics

Can any of the company-specific risk be diversified away by investing in both Comstock Holding 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 Comstock Holding and Spyre Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Comstock Holding Companies and Spyre Therapeutics, you can compare the effects of market volatilities on Comstock Holding 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 Comstock Holding with a short position of Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Holding and Spyre Therapeutics.

Diversification Opportunities for Comstock Holding and Spyre Therapeutics

0.39

Correlation Coefficient

Comstock Holding  Spyre Therapeutics

Weak diversification

The 3 months correlation between Comstock and Spyre is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Holding Companies and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and Comstock Holding 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 Comstock Holding Companies 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 Comstock Holding i.e., Comstock Holding and Spyre Therapeutics go up and down completely randomly.

Pair Corralation between Comstock Holding and Spyre Therapeutics

Given the investment horizon of 90 days Comstock Holding is expected to generate 1.33 times less return on investment than Spyre Therapeutics. But when comparing it to its historical volatility, Comstock Holding Companies is 1.28 times less risky than Spyre Therapeutics. It trades about 0.08 of its potential returns per unit of risk. Spyre Therapeutics is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,050  in Spyre Therapeutics on September 14, 2024 and sell it today you would earn a total of  1,362  from holding Spyre Therapeutics or generate 129.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Comstock Holding Companies  vs.  Spyre Therapeutics

Comstock Holding Com

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Comstock Holding Companies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Comstock Holding is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Spyre Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Spyre Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Comstock Holding and Spyre Therapeutics

The main advantage of trading using opposite Comstock Holding and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Holding 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 Comstock Holding Companies 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.