Correlation Between Custom Truck and Spyre Therapeutics

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

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

Diversification Opportunities for Custom Truck and Spyre Therapeutics

-0.37

Correlation Coefficient

Custom Truck  Spyre Therapeutics

Very good diversification

The 3 months correlation between Custom and Spyre is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Custom Truck One and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics and Custom Truck 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 Custom Truck One 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 Custom Truck i.e., Custom Truck and Spyre Therapeutics go up and down completely randomly.

Pair Corralation between Custom Truck and Spyre Therapeutics

Given the investment horizon of 90 days Custom Truck One is expected to generate 0.71 times more return on investment than Spyre Therapeutics. However, Custom Truck One is 1.41 times less risky than Spyre Therapeutics. It trades about 0.18 of its potential returns per unit of risk. Spyre Therapeutics is currently generating about -0.11 per unit of risk. If you would invest  482.00  in Custom Truck One on October 25, 2024 and sell it today you would earn a total of  41.00  from holding Custom Truck One or generate 8.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Custom Truck One  vs.  Spyre Therapeutics

Custom Truck One

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Custom Truck One are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Custom Truck unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Custom Truck and Spyre Therapeutics

The main advantage of trading using opposite Custom Truck and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Custom Truck 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 Custom Truck One 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.