Correlation Between Prosiebensat and Synchrony Financial
Can any of the company-specific risk be diversified away by investing in both Prosiebensat and Synchrony Financial 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 Prosiebensat and Synchrony Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosiebensat 1 Media and Synchrony Financial, you can compare the effects of market volatilities on Prosiebensat and Synchrony Financial 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 Prosiebensat with a short position of Synchrony Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosiebensat and Synchrony Financial.
Diversification Opportunities for Prosiebensat and Synchrony Financial
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Prosiebensat and Synchrony is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Prosiebensat 1 Media and Synchrony Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchrony Financial and Prosiebensat 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 Prosiebensat 1 Media are associated (or correlated) with Synchrony Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synchrony Financial has no effect on the direction of Prosiebensat i.e., Prosiebensat and Synchrony Financial go up and down completely randomly.
Pair Corralation between Prosiebensat and Synchrony Financial
Assuming the 90 days trading horizon Prosiebensat 1 Media is expected to under-perform the Synchrony Financial. In addition to that, Prosiebensat is 1.16 times more volatile than Synchrony Financial. It trades about -0.04 of its total potential returns per unit of risk. Synchrony Financial is currently generating about 0.08 per unit of volatility. If you would invest 3,156 in Synchrony Financial on August 31, 2024 and sell it today you would earn a total of 3,522 from holding Synchrony Financial or generate 111.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.46% |
| Values | Daily Returns |
Prosiebensat 1 Media vs. Synchrony Financial
Performance |
| Timeline |
| Prosiebensat 1 Media |
| Synchrony Financial |
Prosiebensat and Synchrony Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosiebensat and Synchrony Financial
The main advantage of trading using opposite Prosiebensat and Synchrony Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosiebensat position performs unexpectedly, Synchrony Financial 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 Synchrony Financial will offset losses from the drop in Synchrony Financial's long position.| Prosiebensat vs. Neometals | Prosiebensat vs. Coor Service Management | Prosiebensat vs. Aeorema Communications Plc | Prosiebensat vs. JLEN Environmental Assets |
| Synchrony Financial vs. Neometals | Synchrony Financial vs. Coor Service Management | Synchrony Financial vs. Aeorema Communications Plc | Synchrony Financial vs. JLEN Environmental Assets |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |