Correlation Between Legend Biotech and Synaptogenix
Can any of the company-specific risk be diversified away by investing in both Legend Biotech 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 Legend Biotech and Synaptogenix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legend Biotech Corp and Synaptogenix, you can compare the effects of market volatilities on Legend Biotech 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 Legend Biotech with a short position of Synaptogenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legend Biotech and Synaptogenix.
Diversification Opportunities for Legend Biotech and Synaptogenix
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Legend and Synaptogenix is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Legend Biotech Corp and Synaptogenix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synaptogenix and Legend 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 Legend Biotech Corp 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 Legend Biotech i.e., Legend Biotech and Synaptogenix go up and down completely randomly.
Pair Corralation between Legend Biotech and Synaptogenix
Given the investment horizon of 90 days Legend Biotech Corp is expected to generate 0.47 times more return on investment than Synaptogenix. However, Legend Biotech Corp is 2.14 times less risky than Synaptogenix. It trades about -0.05 of its potential returns per unit of risk. Synaptogenix is currently generating about -0.06 per unit of risk. If you would invest 7,225 in Legend Biotech Corp on September 12, 2024 and sell it today you would lose (3,435) from holding Legend Biotech Corp or give up 47.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legend Biotech Corp vs. Synaptogenix
Performance |
| Timeline |
| Legend Biotech Corp |
| Synaptogenix |
Legend Biotech and Synaptogenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legend Biotech and Synaptogenix
The main advantage of trading using opposite Legend Biotech and Synaptogenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legend Biotech 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.| Legend Biotech vs. Vaxcyte | Legend Biotech vs. Apellis Pharmaceuticals | Legend Biotech vs. Travere Therapeutics | Legend Biotech vs. Akero Therapeutics |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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