Correlation Between Krystal Biotech and Syndax Pharmaceuticals

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Can any of the company-specific risk be diversified away by investing in both Krystal Biotech 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 Krystal Biotech and Syndax Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Krystal Biotech and Syndax Pharmaceuticals, you can compare the effects of market volatilities on Krystal Biotech 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 Krystal Biotech with a short position of Syndax Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krystal Biotech and Syndax Pharmaceuticals.

Diversification Opportunities for Krystal Biotech and Syndax Pharmaceuticals

KrystalSyndaxDiversified AwayKrystalSyndaxDiversified Away100%
0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between Krystal and Syndax is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Krystal Biotech and Syndax Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syndax Pharmaceuticals and Krystal Biotech 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 Krystal Biotech 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 Krystal Biotech i.e., Krystal Biotech and Syndax Pharmaceuticals go up and down completely randomly.

Pair Corralation between Krystal Biotech and Syndax Pharmaceuticals

Given the investment horizon of 90 days Krystal Biotech is expected to generate 1.1 times more return on investment than Syndax Pharmaceuticals. However, Krystal Biotech is 1.1 times more volatile than Syndax Pharmaceuticals. It trades about 0.16 of its potential returns per unit of risk. Syndax Pharmaceuticals is currently generating about 0.12 per unit of risk. If you would invest  15,630  in Krystal Biotech on November 30, 2024 and sell it today you would earn a total of  1,705  from holding Krystal Biotech or generate 10.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Krystal Biotech  vs.  Syndax Pharmaceuticals

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-15-10-50510
JavaScript chart by amCharts 3.21.15KRYS SNDX
       Timeline  
Krystal Biotech 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Krystal Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb150160170180190200
Syndax Pharmaceuticals 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Syndax Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb121314151617

Krystal Biotech and Syndax Pharmaceuticals Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-9.54-7.15-4.75-2.360.02.44.797.199.58 0.0200.0250.0300.0350.0400.045
JavaScript chart by amCharts 3.21.15KRYS SNDX
       Returns  

Pair Trading with Krystal Biotech and Syndax Pharmaceuticals

The main advantage of trading using opposite Krystal Biotech and Syndax Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krystal Biotech 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.
The idea behind Krystal Biotech and Syndax Pharmaceuticals 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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