Correlation Between CSL and Alnylam Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both CSL and Alnylam 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 CSL and Alnylam Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CSL and Alnylam Pharmaceuticals, you can compare the effects of market volatilities on CSL and Alnylam 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 CSL with a short position of Alnylam Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSL and Alnylam Pharmaceuticals.

Diversification Opportunities for CSL and Alnylam Pharmaceuticals

0.19

Correlation Coefficient

CSL  Alnylam Pharmaceuticals

Average diversification

The 3 months correlation between CSL and Alnylam is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CSL and Alnylam Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alnylam Pharmaceuticals and CSL 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 CSL are associated (or correlated) with Alnylam Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alnylam Pharmaceuticals has no effect on the direction of CSL i.e., CSL and Alnylam Pharmaceuticals go up and down completely randomly.

Pair Corralation between CSL and Alnylam Pharmaceuticals

Assuming the 90 days horizon CSL is expected to under-perform the Alnylam Pharmaceuticals. In addition to that, CSL is 1.68 times more volatile than Alnylam Pharmaceuticals. It trades about -0.18 of its total potential returns per unit of risk. Alnylam Pharmaceuticals is currently generating about 0.0 per unit of volatility. If you would invest  45,687  in Alnylam Pharmaceuticals on August 16, 2025 and sell it today you would lose (290.00) from holding Alnylam Pharmaceuticals or give up 0.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CSL  vs.  Alnylam Pharmaceuticals

CSL

Risk-Adjusted Performance

Weakest

Over the last 90 days CSL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Alnylam Pharmaceuticals

Risk-Adjusted Performance

Weakest

Over the last 90 days Alnylam Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Alnylam Pharmaceuticals is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CSL and Alnylam Pharmaceuticals

The main advantage of trading using opposite CSL and Alnylam Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSL position performs unexpectedly, Alnylam 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 Alnylam Pharmaceuticals will offset losses from the drop in Alnylam Pharmaceuticals' long position.

The idea behind CSL and Alnylam 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.