Correlation Between Gyre Therapeutics and Benitec Biopharma

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

By analyzing existing cross correlation between Gyre Therapeutics and Benitec Biopharma Ltd, you can compare the effects of market volatilities on Gyre Therapeutics and Benitec Biopharma 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 Gyre Therapeutics with a short position of Benitec Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gyre Therapeutics and Benitec Biopharma.

Diversification Opportunities for Gyre Therapeutics and Benitec Biopharma

0.35

Correlation Coefficient

Gyre Therapeutics  Benitec Biopharma

Weak diversification

The 3 months correlation between Gyre and Benitec is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Gyre Therapeutics and Benitec Biopharma Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benitec Biopharma and Gyre 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 Gyre Therapeutics are associated (or correlated) with Benitec Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benitec Biopharma has no effect on the direction of Gyre Therapeutics i.e., Gyre Therapeutics and Benitec Biopharma go up and down completely randomly.

Pair Corralation between Gyre Therapeutics and Benitec Biopharma

Given the investment horizon of 90 days Gyre Therapeutics is expected to generate 1.43 times more return on investment than Benitec Biopharma. However, Gyre Therapeutics is 1.43 times more volatile than Benitec Biopharma Ltd. It trades about -0.04 of its potential returns per unit of risk. Benitec Biopharma Ltd is currently generating about -0.08 per unit of risk. If you would invest  881.00  in Gyre Therapeutics on May 4, 2025 and sell it today you would lose (216.00) from holding Gyre Therapeutics or give up 24.52% of portfolio value over 90 days.

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

Gyre Therapeutics  vs.  Benitec Biopharma Ltd

Gyre Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gyre Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Benitec Biopharma

Risk-Adjusted Performance

Very Weak

Over the last 90 days Benitec Biopharma Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Gyre Therapeutics and Benitec Biopharma

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

The idea behind Gyre Therapeutics and Benitec Biopharma Ltd 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.