Correlation Between Spyre Therapeutics and Inhibrx

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

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

Diversification Opportunities for Spyre Therapeutics and Inhibrx

0.4

Correlation Coefficient

Spyre Therapeutics  Inhibrx

Very weak diversification

The 3 months correlation between Spyre and Inhibrx is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx 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 Inhibrx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhibrx has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and Inhibrx go up and down completely randomly.

Pair Corralation between Spyre Therapeutics and Inhibrx

Given the investment horizon of 90 days Spyre Therapeutics is expected to under-perform the Inhibrx. In addition to that, Spyre Therapeutics is 1.24 times more volatile than Inhibrx. It trades about -0.01 of its total potential returns per unit of risk. Inhibrx is currently generating about 0.02 per unit of volatility. If you would invest  1,508  in Inhibrx on September 12, 2024 and sell it today you would earn a total of  4.00  from holding Inhibrx or generate 0.27% 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.  Inhibrx

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.

Inhibrx

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Inhibrx are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental drivers, Inhibrx is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Spyre Therapeutics and Inhibrx

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

The idea behind Spyre Therapeutics and Inhibrx 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.