Correlation Between Spyre Therapeutics and Eterna Therapeutics

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

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

Diversification Opportunities for Spyre Therapeutics and Eterna Therapeutics

-0.51

Correlation Coefficient

Spyre Therapeutics  Eterna Therapeutics

Excellent diversification

The 3 months correlation between Spyre and Eterna is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Spyre Therapeutics and Eterna Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eterna Therapeutics 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 Eterna Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eterna Therapeutics has no effect on the direction of Spyre Therapeutics i.e., Spyre Therapeutics and Eterna Therapeutics go up and down completely randomly.

Pair Corralation between Spyre Therapeutics and Eterna Therapeutics

Given the investment horizon of 90 days Spyre Therapeutics is expected to generate 0.65 times more return on investment than Eterna Therapeutics. However, Spyre Therapeutics is 1.54 times less risky than Eterna Therapeutics. It trades about 0.12 of its potential returns per unit of risk. Eterna Therapeutics is currently generating about -0.16 per unit of risk. If you would invest  1,271  in Spyre Therapeutics on May 7, 2025 and sell it today you would earn a total of  345.00  from holding Spyre Therapeutics or generate 27.14% return on investment over 90 days.

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

Spyre Therapeutics  vs.  Eterna Therapeutics

Spyre Therapeutics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Spyre Therapeutics are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Spyre Therapeutics exhibited solid returns over the last few months and may actually be approaching a breakup point.

Eterna Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eterna Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Spyre Therapeutics and Eterna Therapeutics

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

The idea behind Spyre Therapeutics and Eterna Therapeutics 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.