Correlation Between Cincinnati Financial and Syndax Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Cincinnati Financial 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 Cincinnati Financial and Syndax Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cincinnati Financial Corp and Syndax Pharmaceuticals, you can compare the effects of market volatilities on Cincinnati Financial 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 Cincinnati Financial with a short position of Syndax Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cincinnati Financial and Syndax Pharmaceuticals.
Diversification Opportunities for Cincinnati Financial and Syndax Pharmaceuticals
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cincinnati and Syndax is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cincinnati Financial Corp and Syndax Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syndax Pharmaceuticals and Cincinnati Financial 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 Cincinnati Financial Corp 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 Cincinnati Financial i.e., Cincinnati Financial and Syndax Pharmaceuticals go up and down completely randomly.
Pair Corralation between Cincinnati Financial and Syndax Pharmaceuticals
Assuming the 90 days trading horizon Cincinnati Financial Corp is expected to under-perform the Syndax Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Cincinnati Financial Corp is 2.81 times less risky than Syndax Pharmaceuticals. The stock trades about -0.25 of its potential returns per unit of risk. The Syndax Pharmaceuticals is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,260 in Syndax Pharmaceuticals on October 14, 2024 and sell it today you would earn a total of 50.00 from holding Syndax Pharmaceuticals or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cincinnati Financial Corp vs. Syndax Pharmaceuticals
Performance |
| Timeline |
| Cincinnati Financial Corp |
| Syndax Pharmaceuticals |
Cincinnati Financial and Syndax Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cincinnati Financial and Syndax Pharmaceuticals
The main advantage of trading using opposite Cincinnati Financial and Syndax Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cincinnati Financial 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.| Cincinnati Financial vs. Apple Inc | Cincinnati Financial vs. Apple Inc | Cincinnati Financial vs. Apple Inc | Cincinnati Financial vs. Apple Inc |
| Syndax Pharmaceuticals vs. Geely Automobile Holdings | Syndax Pharmaceuticals vs. Cincinnati Financial Corp | Syndax Pharmaceuticals vs. CarsalesCom | Syndax Pharmaceuticals vs. Motorcar Parts of |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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