Discover Financial Correlations

DFS Stock

USD 202.48 1.45 0.72%

The current 90-days correlation between Discover Financial and Ally Financial is 0.72 (i.e., Poor diversification). The correlation of Discover Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Discover Financial Correlation With Market

Average diversification

The correlation between Discover Financial Services and DJI is 0.16 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Discover Financial Services and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Discover Financial Services. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census.

Moving together with Discover Stock

0.8	BN	Brookfield Corp Earnings Call This Week	Pair Corr
0.85	CG	Carlyle Group Earnings Call This Week	Pair Corr
0.74	ECPG	Encore Capital Group	Pair Corr
0.72	APO	Apollo Global Management Earnings Call This Week	Pair Corr
0.94	AXP	American Express	Pair Corr
0.73	BAM	Brookfield Asset Man Earnings Call This Week	Pair Corr
0.87	KKR	KKR Co LP Earnings Call This Week	Pair Corr
0.82	GCMG	GCM Grosvenor	Pair Corr
0.67	GECC	Great Elm Capital	Pair Corr
0.73	MAIN	Main Street Capital	Pair Corr
0.78	NTRS	Northern Trust	Pair Corr
0.74	PFSI	PennyMac Finl Svcs Normal Trading	Pair Corr
0.64	SNFCA	Security National	Pair Corr
0.8	ARCC	Ares Capital Earnings Call This Week	Pair Corr
0.81	ARES	Ares Management LP Earnings Call This Week	Pair Corr
0.86	COOP	Mr Cooper Group Earnings Call This Week	Pair Corr
0.92	C	Citigroup Earnings Call This Week	Pair Corr
0.7	L	Loews Corp Earnings Call This Week	Pair Corr
0.92	V	Visa Class A	Pair Corr
0.85	BK	Bank of New York	Pair Corr
0.67	DB	Deutsche Bank AG	Pair Corr
0.76	GL	Globe Life Earnings Call This Week	Pair Corr

Moving against Discover Stock

0.5	RKT	Rocket Companies	Pair Corr
0.45	WD	Walker Dunlop	Pair Corr
0.37	NU	Nu Holdings Buyout Trend	Pair Corr
0.36	CB	Chubb Sell-off Trend	Pair Corr

Related Correlations Analysis

	ALLY	SYF-PA	WU	BFH	AXP	MA	V	PYPL	COF	SYF
ALLY		0.19	-0.04	0.49	0.71	0.69	0.61	0.56	0.83	0.71	ALLY
SYF-PA	0.19		0.28	-0.45	-0.46	-0.27	-0.49	-0.4	-0.18	-0.31	SYF-PA
WU	-0.04	0.28		-0.29	-0.35	-0.15	-0.42	-0.14	-0.39	-0.29	WU
BFH	0.49	-0.45	-0.29		0.77	0.69	0.82	0.83	0.68	0.84	BFH
AXP	0.71	-0.46	-0.35	0.77		0.72	0.91	0.83	0.89	0.91	AXP
MA	0.69	-0.27	-0.15	0.69	0.72		0.85	0.65	0.77	0.7	MA
V	0.61	-0.49	-0.42	0.82	0.91	0.85		0.76	0.88	0.88	V
PYPL	0.56	-0.4	-0.14	0.83	0.83	0.65	0.76		0.72	0.87	PYPL
COF	0.83	-0.18	-0.39	0.68	0.89	0.77	0.88	0.72		0.89	COF
SYF	0.71	-0.31	-0.29	0.84	0.91	0.7	0.88	0.87	0.89		SYF
	ALLY	SYF-PA	WU	BFH	AXP	MA	V	PYPL	COF	SYF

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

V	+ 0.91	AXP
SYF	+ 0.91	AXP
COF	+ 0.89	AXP
SYF	+ 0.89	COF
COF	+ 0.88	V
SYF	+ 0.88	V

High negative correlations

V	- 0.49	SYF-PA
AXP	- 0.46	SYF-PA
BFH	- 0.45	SYF-PA
V	- 0.42	WU
PYPL	- 0.4	SYF-PA
COF	- 0.39	WU

Risk-Adjusted Indicators

There is a big difference between Discover Stock performing well and Discover Financial Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Discover Financial's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
ALLY	1.45	0.15	0.09	0.25	1.53	(1.74)	3.85	(2.69)	12.94
SYF-PA	1.01	(0.11)	0.00	(0.16)	0.00	0.00	2.17	(1.97)	5.87
WU	0.84	(0.10)	0.00	(0.28)	0.00	0.00	1.43	(1.63)	7.57
BFH	1.98	0.36	0.14	2.18	1.93	(2.56)	3.78	(3.53)	25.75
AXP	1.15	0.20	0.11	0.42	1.19	(1.21)	2.13	(2.39)	11.46
MA	0.83	0.14	0.06	0.70	0.87	(0.92)	2.62	(1.81)	5.20
V	0.75	0.27	0.22	1.57	0.52	(0.89)	2.13	(1.15)	7.49
PYPL	1.47	0.10	0.03	0.24	1.87	(1.54)	3.25	(2.59)	10.88
COF	1.59	0.40	0.24	0.63	1.15	(1.87)	3.23	(2.39)	18.73
SYF	1.58	0.33	0.14	0.67	1.53	(1.69)	3.10	(3.07)	24.17

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