Correlation Between Spyre Therapeutics and Estrella Immunopharma

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

By analyzing existing cross correlation between Spyre Therapeutics and Estrella Immunopharma, you can compare the effects of market volatilities on Spyre Therapeutics and Estrella Immunopharma 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 Estrella Immunopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spyre Therapeutics and Estrella Immunopharma.

Diversification Opportunities for Spyre Therapeutics and Estrella Immunopharma

0.56

Correlation Coefficient

Spyre Therapeutics  Estrella Immunopharma

Very weak diversification

The 3 months correlation between Spyre and Estrella is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and Estrella Immunopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Estrella Immunopharma 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 Estrella Immunopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Estrella Immunopharma has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and Estrella Immunopharma go up and down completely randomly.

Pair Corralation between Spyre Therapeutics and Estrella Immunopharma

Given the investment horizon of 90 days Spyre Therapeutics is expected to under-perform the Estrella Immunopharma. But the stock apears to be less risky and, when comparing its historical volatility, Spyre Therapeutics is 1.64 times less risky than Estrella Immunopharma. The stock trades about -0.09 of its potential returns per unit of risk. The Estrella Immunopharma is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  124.00  in Estrella Immunopharma on December 28, 2024 and sell it today you would lose (31.00) from holding Estrella Immunopharma or give up 25.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Spyre Therapeutics  vs.  Estrella Immunopharma

Spyre Therapeutics

Risk-Adjusted Performance

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

Estrella Immunopharma

Risk-Adjusted Performance

Very Weak

Over the last 90 days Estrella Immunopharma has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Spyre Therapeutics and Estrella Immunopharma

The main advantage of trading using opposite Spyre Therapeutics and Estrella Immunopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spyre Therapeutics position performs unexpectedly, Estrella Immunopharma 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 Estrella Immunopharma will offset losses from the drop in Estrella Immunopharma's long position.

The idea behind Spyre Therapeutics and Estrella Immunopharma 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.