Correlation Between Synlogic and AC Immune
Can any of the company-specific risk be diversified away by investing in both Synlogic and AC Immune 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 Synlogic and AC Immune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synlogic and AC Immune, you can compare the effects of market volatilities on Synlogic and AC Immune 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 Synlogic with a short position of AC Immune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synlogic and AC Immune.
Diversification Opportunities for Synlogic and AC Immune
Very weak diversification
The 3 months correlation between Synlogic and ACIU is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Synlogic and AC Immune in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AC Immune and Synlogic 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 Synlogic are associated (or correlated) with AC Immune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC Immune has no effect on the direction of Synlogic i.e., Synlogic and AC Immune go up and down completely randomly.
Pair Corralation between Synlogic and AC Immune
Given the investment horizon of 90 days Synlogic is expected to under-perform the AC Immune. But the stock apears to be less risky and, when comparing its historical volatility, Synlogic is 1.18 times less risky than AC Immune. The stock trades about -0.02 of its potential returns per unit of risk. The AC Immune is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 323.00 in AC Immune on August 29, 2024 and sell it today you would earn a total of 17.00 from holding AC Immune or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synlogic vs. AC Immune
Performance |
| Timeline |
| Synlogic |
| AC Immune |
Synlogic and AC Immune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synlogic and AC Immune
The main advantage of trading using opposite Synlogic and AC Immune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synlogic position performs unexpectedly, AC Immune 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 AC Immune will offset losses from the drop in AC Immune's long position.| Synlogic vs. Valneva SE ADR | Synlogic vs. Bright Minds Biosciences | Synlogic vs. HP Inc | Synlogic vs. Intel |
| AC Immune vs. Pmv Pharmaceuticals | AC Immune vs. Eliem Therapeutics | AC Immune vs. MediciNova | AC Immune vs. Pharvaris BV |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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