Correlation Between Tyson Foods and Spire Healthcare

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

By analyzing existing cross correlation between Tyson Foods Cl and Spire Healthcare Group, you can compare the effects of market volatilities on Tyson Foods and Spire Healthcare 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 Tyson Foods with a short position of Spire Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tyson Foods and Spire Healthcare.

Diversification Opportunities for Tyson Foods and Spire Healthcare

-0.6

Correlation Coefficient

Tyson Foods  Spire Healthcare

Excellent diversification

The 3 months correlation between Tyson and Spire is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tyson Foods Cl and Spire Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spire Healthcare and Tyson Foods 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 Tyson Foods Cl are associated (or correlated) with Spire Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spire Healthcare has no effect on the direction of Tyson Foods i.e., Tyson Foods and Spire Healthcare go up and down completely randomly.

Pair Corralation between Tyson Foods and Spire Healthcare

Assuming the 90 days trading horizon Tyson Foods Cl is expected to under-perform the Spire Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Tyson Foods Cl is 1.03 times less risky than Spire Healthcare. The stock trades about -0.15 of its potential returns per unit of risk. The Spire Healthcare Group is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  18,126  in Spire Healthcare Group on April 23, 2025 and sell it today you would earn a total of  4,374  from holding Spire Healthcare Group or generate 24.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Tyson Foods Cl  vs.  Spire Healthcare Group

Tyson Foods Cl

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tyson Foods Cl 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 comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Spire Healthcare

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Spire Healthcare Group are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Spire Healthcare exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tyson Foods and Spire Healthcare

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

The idea behind Tyson Foods Cl and Spire Healthcare Group 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.