Correlation Between WuXi AppTec and Syneos Health
Can any of the company-specific risk be diversified away by investing in both WuXi AppTec 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 WuXi AppTec and Syneos Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WuXi AppTec Co and Syneos Health, you can compare the effects of market volatilities on WuXi AppTec 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 WuXi AppTec with a short position of Syneos Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of WuXi AppTec and Syneos Health.
Diversification Opportunities for WuXi AppTec and Syneos Health
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WuXi and Syneos is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding WuXi AppTec Co and Syneos Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syneos Health and WuXi AppTec 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 WuXi AppTec Co 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 WuXi AppTec i.e., WuXi AppTec and Syneos Health go up and down completely randomly.
Pair Corralation between WuXi AppTec and Syneos Health
If you would invest 727.00 in WuXi AppTec Co on September 13, 2024 and sell it today you would earn a total of 39.00 from holding WuXi AppTec Co or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
WuXi AppTec Co vs. Syneos Health
Performance |
| Timeline |
| WuXi AppTec |
| Syneos Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
WuXi AppTec and Syneos Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WuXi AppTec and Syneos Health
The main advantage of trading using opposite WuXi AppTec and Syneos Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WuXi AppTec 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.| WuXi AppTec vs. Neuronetics | WuXi AppTec vs. Intelligent Bio Solutions | WuXi AppTec vs. Biodesix | WuXi AppTec vs. Precipio |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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