Correlation Between Spero Therapeutics and Tevogen Bio

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Can any of the company-specific risk be diversified away by investing in both Spero Therapeutics and Tevogen Bio 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 Spero Therapeutics and Tevogen Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spero Therapeutics and Tevogen Bio Holdings, you can compare the effects of market volatilities on Spero Therapeutics and Tevogen Bio 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 Spero Therapeutics with a short position of Tevogen Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spero Therapeutics and Tevogen Bio.

Diversification Opportunities for Spero Therapeutics and Tevogen Bio

-0.85
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Spero and Tevogen is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Spero Therapeutics and Tevogen Bio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tevogen Bio Holdings and Spero 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 Spero Therapeutics are associated (or correlated) with Tevogen Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tevogen Bio Holdings has no effect on the direction of Spero Therapeutics i.e., Spero Therapeutics and Tevogen Bio go up and down completely randomly.

Pair Corralation between Spero Therapeutics and Tevogen Bio

Given the investment horizon of 90 days Spero Therapeutics is expected to generate 4.76 times more return on investment than Tevogen Bio. However, Spero Therapeutics is 4.76 times more volatile than Tevogen Bio Holdings. It trades about 0.09 of its potential returns per unit of risk. Tevogen Bio Holdings is currently generating about -0.14 per unit of risk. If you would invest  69.00  in Spero Therapeutics on August 16, 2025 and sell it today you would earn a total of  175.00  from holding Spero Therapeutics or generate 253.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Spero Therapeutics  vs.  Tevogen Bio Holdings

 Performance 
       Timeline  
Spero Therapeutics 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Spero Therapeutics are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Spero Therapeutics displayed solid returns over the last few months and may actually be approaching a breakup point.
Tevogen Bio Holdings 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Tevogen Bio Holdings 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 technical and fundamental indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Spero Therapeutics and Tevogen Bio Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Spero Therapeutics and Tevogen Bio

The main advantage of trading using opposite Spero Therapeutics and Tevogen Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spero Therapeutics position performs unexpectedly, Tevogen Bio 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 Tevogen Bio will offset losses from the drop in Tevogen Bio's long position.
The idea behind Spero Therapeutics and Tevogen Bio Holdings 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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