Correlation Between China Resources and Syndax Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both China Resources 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 China Resources and Syndax Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Resources Beer and Syndax Pharmaceuticals, you can compare the effects of market volatilities on China Resources 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 China Resources with a short position of Syndax Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Resources and Syndax Pharmaceuticals.
Diversification Opportunities for China Resources and Syndax Pharmaceuticals
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Syndax is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding China Resources Beer and Syndax Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syndax Pharmaceuticals and China Resources 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 China Resources Beer 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 China Resources i.e., China Resources and Syndax Pharmaceuticals go up and down completely randomly.
Pair Corralation between China Resources and Syndax Pharmaceuticals
Assuming the 90 days horizon China Resources Beer is expected to generate 0.97 times more return on investment than Syndax Pharmaceuticals. However, China Resources Beer is 1.03 times less risky than Syndax Pharmaceuticals. It trades about -0.02 of its potential returns per unit of risk. Syndax Pharmaceuticals is currently generating about -0.02 per unit of risk. If you would invest 480.00 in China Resources Beer on October 31, 2024 and sell it today you would lose (188.00) from holding China Resources Beer or give up 39.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Resources Beer vs. Syndax Pharmaceuticals
Performance |
| Timeline |
| China Resources Beer |
| Syndax Pharmaceuticals |
China Resources and Syndax Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Resources and Syndax Pharmaceuticals
The main advantage of trading using opposite China Resources and Syndax Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Resources 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.| China Resources vs. Cars Inc | China Resources vs. INTER CARS SA | China Resources vs. Geely Automobile Holdings | China Resources vs. WillScot Mobile Mini |
| Syndax Pharmaceuticals vs. Synchrony Financial | Syndax Pharmaceuticals vs. INDO RAMA SYNTHETIC | Syndax Pharmaceuticals vs. BANK OF CHINA | Syndax Pharmaceuticals vs. Commonwealth Bank 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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