Correlation Between Spyre Therapeutics and One Gas

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

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

Diversification Opportunities for Spyre Therapeutics and One Gas

-0.21

Correlation Coefficient

Spyre Therapeutics  One Gas

Very good diversification

The 3 months correlation between Spyre and One is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and One Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Gas 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 One Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Gas has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and One Gas go up and down completely randomly.

Pair Corralation between Spyre Therapeutics and One Gas

Given the investment horizon of 90 days Spyre Therapeutics is expected to under-perform the One Gas. In addition to that, Spyre Therapeutics is 2.91 times more volatile than One Gas. It trades about -0.01 of its total potential returns per unit of risk. One Gas is currently generating about 0.03 per unit of volatility. If you would invest  7,055  in One Gas on September 12, 2024 and sell it today you would earn a total of  114.00  from holding One Gas or generate 1.62% return on investment over 90 days.

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

Spyre Therapeutics  vs.  One Gas

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 rather sound basic indicators, Spyre Therapeutics is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

One Gas

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in One Gas are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, One Gas is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Spyre Therapeutics and One Gas

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

The idea behind Spyre Therapeutics and One Gas 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.