Correlation Between Ascendis Pharma and Synaptogenix
Can any of the company-specific risk be diversified away by investing in both Ascendis Pharma and Synaptogenix 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 Ascendis Pharma and Synaptogenix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendis Pharma AS and Synaptogenix, you can compare the effects of market volatilities on Ascendis Pharma and Synaptogenix 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 Ascendis Pharma with a short position of Synaptogenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Pharma and Synaptogenix.
Diversification Opportunities for Ascendis Pharma and Synaptogenix
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ascendis and Synaptogenix is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Pharma AS and Synaptogenix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synaptogenix and Ascendis Pharma 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 Ascendis Pharma AS are associated (or correlated) with Synaptogenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synaptogenix has no effect on the direction of Ascendis Pharma i.e., Ascendis Pharma and Synaptogenix go up and down completely randomly.
Pair Corralation between Ascendis Pharma and Synaptogenix
Given the investment horizon of 90 days Ascendis Pharma is expected to generate 1.89 times less return on investment than Synaptogenix. But when comparing it to its historical volatility, Ascendis Pharma AS is 2.44 times less risky than Synaptogenix. It trades about 0.14 of its potential returns per unit of risk. Synaptogenix is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 285.00 in Synaptogenix on September 4, 2024 and sell it today you would earn a total of 28.00 from holding Synaptogenix or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendis Pharma AS vs. Synaptogenix
Performance |
| Timeline |
| Ascendis Pharma AS |
| Synaptogenix |
Ascendis Pharma and Synaptogenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Pharma and Synaptogenix
The main advantage of trading using opposite Ascendis Pharma and Synaptogenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Pharma position performs unexpectedly, Synaptogenix 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 Synaptogenix will offset losses from the drop in Synaptogenix's long position.| Ascendis Pharma vs. Apellis Pharmaceuticals | Ascendis Pharma vs. BeiGene | Ascendis Pharma vs. Akero Therapeutics | Ascendis Pharma vs. Blueprint Medicines Corp |
| Synaptogenix vs. Annovis Bio | Synaptogenix vs. Cyclo Therapeutics | Synaptogenix vs. Reviva Pharmaceuticals Holdings | Synaptogenix vs. INmune Bio |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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