Correlation Between Castle Biosciences and Syneos Health
Can any of the company-specific risk be diversified away by investing in both Castle Biosciences and Syneos Health 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 Castle Biosciences and Syneos Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castle Biosciences and Syneos Health, you can compare the effects of market volatilities on Castle Biosciences and Syneos Health 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 Castle Biosciences with a short position of Syneos Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castle Biosciences and Syneos Health.
Diversification Opportunities for Castle Biosciences and Syneos Health
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Castle and Syneos is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Castle Biosciences and Syneos Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syneos Health and Castle Biosciences 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 Castle Biosciences are associated (or correlated) with Syneos Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syneos Health has no effect on the direction of Castle Biosciences i.e., Castle Biosciences and Syneos Health go up and down completely randomly.
Pair Corralation between Castle Biosciences and Syneos Health
If you would invest 4,231 in Syneos Health on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Syneos Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Castle Biosciences vs. Syneos Health
Performance |
| Timeline |
| Castle Biosciences |
| Syneos Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Castle Biosciences and Syneos Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castle Biosciences and Syneos Health
The main advantage of trading using opposite Castle Biosciences and Syneos Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castle Biosciences position performs unexpectedly, Syneos Health 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 Syneos Health will offset losses from the drop in Syneos Health's long position.| Castle Biosciences vs. Caredx Inc | Castle Biosciences vs. Twist Bioscience Corp | Castle Biosciences vs. Biodesix | Castle Biosciences vs. Natera Inc |
| Syneos Health vs. ICON PLC | Syneos Health vs. Mettler Toledo International | Syneos Health vs. Charles River Laboratories | Syneos Health vs. Laboratory 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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