Correlation Between Spyre Therapeutics and Killbuck Bancshares

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

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

Diversification Opportunities for Spyre Therapeutics and Killbuck Bancshares

0.44

Correlation Coefficient

Spyre Therapeutics  Killbuck Bancshares

Very weak diversification

The 3 months correlation between Spyre and Killbuck is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and Killbuck Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Killbuck Bancshares 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 Killbuck Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Killbuck Bancshares has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and Killbuck Bancshares go up and down completely randomly.

Pair Corralation between Spyre Therapeutics and Killbuck Bancshares

Given the investment horizon of 90 days Spyre Therapeutics is expected to under-perform the Killbuck Bancshares. But the stock apears to be less risky and, when comparing its historical volatility, Spyre Therapeutics is 1.96 times less risky than Killbuck Bancshares. The stock trades about -0.12 of its potential returns per unit of risk. The Killbuck Bancshares is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  11,500  in Killbuck Bancshares on October 8, 2024 and sell it today you would earn a total of  2,499  from holding Killbuck Bancshares or generate 21.73% return on investment over 90 days.

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

Spyre Therapeutics  vs.  Killbuck Bancshares

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 latest fragile performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Killbuck Bancshares

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Killbuck Bancshares are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward indicators, Killbuck Bancshares is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Spyre Therapeutics and Killbuck Bancshares

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

The idea behind Spyre Therapeutics and Killbuck Bancshares 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.