Correlation Between Spyre Therapeutics and Coca Cola

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

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

Diversification Opportunities for Spyre Therapeutics and Coca Cola

-0.73

Correlation Coefficient

Spyre Therapeutics  Coca Cola

Pay attention - limited upside

The 3 months correlation between Spyre and Coca is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and Coca Cola go up and down completely randomly.

Pair Corralation between Spyre Therapeutics and Coca Cola

Given the investment horizon of 90 days Spyre Therapeutics is expected to under-perform the Coca Cola. In addition to that, Spyre Therapeutics is 3.01 times more volatile than The Coca Cola. It trades about -0.13 of its total potential returns per unit of risk. The Coca Cola is currently generating about 0.16 per unit of volatility. If you would invest  6,211  in The Coca Cola on December 26, 2024 and sell it today you would earn a total of  791.00  from holding The Coca Cola or generate 12.74% return on investment over 90 days.

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

Spyre Therapeutics  vs.  The Coca Cola

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 conflicting 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.

Coca Cola

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Coca Cola are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Coca Cola displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Spyre Therapeutics and Coca Cola

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

The idea behind Spyre Therapeutics and The Coca Cola 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.