Correlation Between Syndax Pharmaceuticals and Genfit

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

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

Diversification Opportunities for Syndax Pharmaceuticals and Genfit

0.74

Correlation Coefficient

Syndax Pharmaceuticals  Genfit

Poor diversification

The 3 months correlation between Syndax and Genfit is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Syndax Pharmaceuticals and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Syndax Pharmaceuticals 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 Syndax Pharmaceuticals are associated (or correlated) with Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Syndax Pharmaceuticals i.e., Syndax Pharmaceuticals and Genfit go up and down completely randomly.

Pair Corralation between Syndax Pharmaceuticals and Genfit

Given the investment horizon of 90 days Syndax Pharmaceuticals is expected to under-perform the Genfit. In addition to that, Syndax Pharmaceuticals is 1.78 times more volatile than Genfit. It trades about -0.22 of its total potential returns per unit of risk. Genfit is currently generating about -0.37 per unit of volatility. If you would invest  437.00  in Genfit on September 17, 2024 and sell it today you would lose (55.00) from holding Genfit or give up 12.59% of portfolio value over 90 days.

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

Syndax Pharmaceuticals  vs.  Genfit

Syndax Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Syndax Pharmaceuticals 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 fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Genfit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genfit has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Genfit is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Syndax Pharmaceuticals and Genfit

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

The idea behind Syndax Pharmaceuticals and Genfit 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.