Correlation Between Spyre Therapeutics and Apogee Enterprises

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

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

Diversification Opportunities for Spyre Therapeutics and Apogee Enterprises

0.2

Correlation Coefficient

Spyre Therapeutics  Apogee Enterprises

Modest diversification

The 3 months correlation between Spyre and Apogee is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises 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 Apogee Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Enterprises has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and Apogee Enterprises go up and down completely randomly.

Pair Corralation between Spyre Therapeutics and Apogee Enterprises

Given the investment horizon of 90 days Spyre Therapeutics is expected to generate 1.99 times more return on investment than Apogee Enterprises. However, Spyre Therapeutics is 1.99 times more volatile than Apogee Enterprises. It trades about 0.07 of its potential returns per unit of risk. Apogee Enterprises is currently generating about 0.09 per unit of risk. If you would invest  1,581  in Spyre Therapeutics on September 13, 2024 and sell it today you would earn a total of  1,063  from holding Spyre Therapeutics or generate 67.24% return on investment over 90 days.

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

Spyre Therapeutics  vs.  Apogee Enterprises

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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

Apogee Enterprises

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apogee Enterprises are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Apogee Enterprises reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Spyre Therapeutics and Apogee Enterprises

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

The idea behind Spyre Therapeutics and Apogee Enterprises 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.