Correlation Between AnaptysBio and Syndax Pharmaceuticals

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

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

Diversification Opportunities for AnaptysBio and Syndax Pharmaceuticals

0.27

Correlation Coefficient

AnaptysBio  Syndax Pharmaceuticals

Modest diversification

The 3 months correlation between AnaptysBio and Syndax is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding AnaptysBio and Syndax Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syndax Pharmaceuticals and AnaptysBio 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 AnaptysBio are associated (or correlated) with Syndax Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syndax Pharmaceuticals has no effect on the direction of AnaptysBio i.e., AnaptysBio and Syndax Pharmaceuticals go up and down completely randomly.

Pair Corralation between AnaptysBio and Syndax Pharmaceuticals

Given the investment horizon of 90 days AnaptysBio is expected to generate 2.0 times more return on investment than Syndax Pharmaceuticals. However, AnaptysBio is 2.0 times more volatile than Syndax Pharmaceuticals. It trades about 0.12 of its potential returns per unit of risk. Syndax Pharmaceuticals is currently generating about 0.04 per unit of risk. If you would invest  1,322  in AnaptysBio on December 30, 2024 and sell it today you would earn a total of  573.00  from holding AnaptysBio or generate 43.34% return on investment over 90 days.

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

AnaptysBio  vs.  Syndax Pharmaceuticals

AnaptysBio

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AnaptysBio are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, AnaptysBio sustained solid returns over the last few months and may actually be approaching a breakup point.

Syndax Pharmaceuticals

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Syndax Pharmaceuticals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, Syndax Pharmaceuticals may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with AnaptysBio and Syndax Pharmaceuticals

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

The idea behind AnaptysBio and Syndax Pharmaceuticals 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.