Correlation Between Syndax Pharmaceuticals and SpringWorks Therapeutics

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

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

Diversification Opportunities for Syndax Pharmaceuticals and SpringWorks Therapeutics

-0.77

Correlation Coefficient

Syndax Pharmaceuticals  SpringWorks Therapeutics

Pay attention - limited upside

The 3 months correlation between Syndax and SpringWorks is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Syndax Pharmaceuticals and SpringWorks Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpringWorks Therapeutics and Syndax Pharmaceuticals 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 Syndax Pharmaceuticals are associated (or correlated) with SpringWorks Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpringWorks Therapeutics has no effect on the direction of Syndax Pharmaceuticals i.e., Syndax Pharmaceuticals and SpringWorks Therapeutics go up and down completely randomly.

Pair Corralation between Syndax Pharmaceuticals and SpringWorks Therapeutics

Given the investment horizon of 90 days Syndax Pharmaceuticals is expected to under-perform the SpringWorks Therapeutics. In addition to that, Syndax Pharmaceuticals is 2.68 times more volatile than SpringWorks Therapeutics. It trades about -0.04 of its total potential returns per unit of risk. SpringWorks Therapeutics is currently generating about 0.26 per unit of volatility. If you would invest  3,706  in SpringWorks Therapeutics on April 20, 2025 and sell it today you would earn a total of  993.00  from holding SpringWorks Therapeutics or generate 26.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	80.65%
Values	Daily Returns

Syndax Pharmaceuticals  vs.  SpringWorks Therapeutics

Syndax Pharmaceuticals

Risk-Adjusted Performance

Very Weak

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

SpringWorks Therapeutics

Risk-Adjusted Performance

Solid

Over the last 90 days SpringWorks Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly unsteady basic indicators, SpringWorks Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Syndax Pharmaceuticals and SpringWorks Therapeutics

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

The idea behind Syndax Pharmaceuticals and SpringWorks Therapeutics 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.