Correlation Between Xiwang Special and Synchrony Financial
Can any of the company-specific risk be diversified away by investing in both Xiwang Special 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 Xiwang Special and Synchrony Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xiwang Special Steel and Synchrony Financial, you can compare the effects of market volatilities on Xiwang Special 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 Xiwang Special with a short position of Synchrony Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Special and Synchrony Financial.
Diversification Opportunities for Xiwang Special and Synchrony Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xiwang and Synchrony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Special Steel and Synchrony Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchrony Financial and Xiwang Special 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 Xiwang Special Steel 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 Xiwang Special i.e., Xiwang Special and Synchrony Financial go up and down completely randomly.
Pair Corralation between Xiwang Special and Synchrony Financial
Assuming the 90 days horizon Xiwang Special Steel is expected to generate 48.16 times more return on investment than Synchrony Financial. However, Xiwang Special is 48.16 times more volatile than Synchrony Financial. It trades about 0.09 of its potential returns per unit of risk. Synchrony Financial is currently generating about 0.08 per unit of risk. If you would invest 1.40 in Xiwang Special Steel on October 16, 2024 and sell it today you would lose (1.39) from holding Xiwang Special Steel or give up 99.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Xiwang Special Steel vs. Synchrony Financial
Performance |
| Timeline |
| Xiwang Special Steel |
| Synchrony Financial |
Xiwang Special and Synchrony Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Special and Synchrony Financial
The main advantage of trading using opposite Xiwang Special and Synchrony Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Special 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.| Xiwang Special vs. Khiron Life Sciences | Xiwang Special vs. AEON STORES | Xiwang Special vs. Costco Wholesale Corp | Xiwang Special vs. H2O Retailing |
| Synchrony Financial vs. Bio Techne Corp | Synchrony Financial vs. Xiwang Special Steel | Synchrony Financial vs. Easy Software AG | Synchrony Financial vs. ACCSYS TECHPLC EO |
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.
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