Correlation Between Spruce Biosciences and Shattuck Labs

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

By analyzing existing cross correlation between Spruce Biosciences and Shattuck Labs, you can compare the effects of market volatilities on Spruce Biosciences and Shattuck Labs 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 Spruce Biosciences with a short position of Shattuck Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spruce Biosciences and Shattuck Labs.

Diversification Opportunities for Spruce Biosciences and Shattuck Labs

0.69

Correlation Coefficient

Spruce Biosciences  Shattuck Labs

Poor diversification

The 3 months correlation between Spruce and Shattuck is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Spruce Biosciences and Shattuck Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shattuck Labs and Spruce Biosciences 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 Spruce Biosciences are associated (or correlated) with Shattuck Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shattuck Labs has no effect on the direction of Spruce Biosciences i.e., Spruce Biosciences and Shattuck Labs go up and down completely randomly.

Pair Corralation between Spruce Biosciences and Shattuck Labs

If you would invest  7.19  in Spruce Biosciences on May 5, 2025 and sell it today you would earn a total of  0.00  from holding Spruce Biosciences or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	3.17%
Values	Daily Returns

Spruce Biosciences  vs.  Shattuck Labs

Spruce Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Spruce Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Spruce Biosciences is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Shattuck Labs

Risk-Adjusted Performance

Very Weak

Over the last 90 days Shattuck Labs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Spruce Biosciences and Shattuck Labs

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

The idea behind Spruce Biosciences and Shattuck Labs 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.