Correlation Between Synchrony Financial and YouGov Plc
Can any of the company-specific risk be diversified away by investing in both Synchrony Financial and YouGov Plc 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 Synchrony Financial and YouGov Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synchrony Financial and YouGov plc, you can compare the effects of market volatilities on Synchrony Financial and YouGov Plc 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 Synchrony Financial with a short position of YouGov Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synchrony Financial and YouGov Plc.
Diversification Opportunities for Synchrony Financial and YouGov Plc
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Synchrony and YouGov is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Synchrony Financial and YouGov plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YouGov plc and Synchrony Financial 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 Synchrony Financial are associated (or correlated) with YouGov Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YouGov plc has no effect on the direction of Synchrony Financial i.e., Synchrony Financial and YouGov Plc go up and down completely randomly.
Pair Corralation between Synchrony Financial and YouGov Plc
Assuming the 90 days trading horizon Synchrony Financial is expected to generate 0.62 times more return on investment than YouGov Plc. However, Synchrony Financial is 1.62 times less risky than YouGov Plc. It trades about 0.08 of its potential returns per unit of risk. YouGov plc is currently generating about -0.02 per unit of risk. If you would invest 3,369 in Synchrony Financial on August 30, 2024 and sell it today you would earn a total of 3,309 from holding Synchrony Financial or generate 98.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.77% |
| Values | Daily Returns |
Synchrony Financial vs. YouGov plc
Performance |
| Timeline |
| Synchrony Financial |
| YouGov plc |
Synchrony Financial and YouGov Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synchrony Financial and YouGov Plc
The main advantage of trading using opposite Synchrony Financial and YouGov Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synchrony Financial position performs unexpectedly, YouGov Plc 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 YouGov Plc will offset losses from the drop in YouGov Plc's long position.| Synchrony Financial vs. Lendinvest PLC | Synchrony Financial vs. Neometals | Synchrony Financial vs. Albion Technology General | Synchrony Financial vs. Jupiter Fund Management |
| YouGov Plc vs. Hollywood Bowl Group | YouGov Plc vs. Direct Line Insurance | YouGov Plc vs. Supermarket Income REIT | YouGov Plc vs. Catalyst Media Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |