Correlation Between Spyre Therapeutics and Eltek
Can any of the company-specific risk be diversified away by investing in both Spyre Therapeutics and Eltek 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 Eltek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spyre Therapeutics and Eltek, you can compare the effects of market volatilities on Spyre Therapeutics and Eltek 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 Eltek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spyre Therapeutics and Eltek.
Diversification Opportunities for Spyre Therapeutics and Eltek
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spyre and Eltek is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and Eltek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eltek 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 Eltek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eltek has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and Eltek go up and down completely randomly.
Pair Corralation between Spyre Therapeutics and Eltek
Given the investment horizon of 90 days Spyre Therapeutics is expected to under-perform the Eltek. In addition to that, Spyre Therapeutics is 1.51 times more volatile than Eltek. It trades about -0.07 of its total potential returns per unit of risk. Eltek is currently generating about 0.03 per unit of volatility. If you would invest 1,074 in Eltek on September 26, 2024 and sell it today you would earn a total of 26.00 from holding Eltek or generate 2.42% 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. Eltek
Performance |
Timeline |
Spyre Therapeutics |
Eltek |
Spyre Therapeutics and Eltek Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Spyre Therapeutics and Eltek
The main advantage of trading using opposite Spyre Therapeutics and Eltek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spyre Therapeutics position performs unexpectedly, Eltek 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 Eltek will offset losses from the drop in Eltek's long position.Spyre Therapeutics vs. Fate Therapeutics | Spyre Therapeutics vs. Caribou Biosciences | Spyre Therapeutics vs. Karyopharm Therapeutics | Spyre Therapeutics vs. Hookipa Pharma |
Check out your portfolio center.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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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