Correlation Between Apollo Medical and Synovus Financial
Can any of the company-specific risk be diversified away by investing in both Apollo Medical and Synovus 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 Apollo Medical and Synovus Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Medical Holdings and Synovus Financial Corp, you can compare the effects of market volatilities on Apollo Medical and Synovus 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 Apollo Medical with a short position of Synovus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Medical and Synovus Financial.
Diversification Opportunities for Apollo Medical and Synovus Financial
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apollo and Synovus is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and Synovus Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synovus Financial Corp and Apollo Medical 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 Apollo Medical Holdings are associated (or correlated) with Synovus Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synovus Financial Corp has no effect on the direction of Apollo Medical i.e., Apollo Medical and Synovus Financial go up and down completely randomly.
Pair Corralation between Apollo Medical and Synovus Financial
Assuming the 90 days horizon Apollo Medical is expected to generate 7.45 times less return on investment than Synovus Financial. But when comparing it to its historical volatility, Apollo Medical Holdings is 1.07 times less risky than Synovus Financial. It trades about 0.02 of its potential returns per unit of risk. Synovus Financial Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,115 in Synovus Financial Corp on November 9, 2024 and sell it today you would earn a total of 2,335 from holding Synovus Financial Corp or generate 74.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Medical Holdings vs. Synovus Financial Corp
Performance |
| Timeline |
| Apollo Medical Holdings |
| Synovus Financial Corp |
Apollo Medical and Synovus Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Medical and Synovus Financial
The main advantage of trading using opposite Apollo Medical and Synovus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Medical position performs unexpectedly, Synovus 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 Synovus Financial will offset losses from the drop in Synovus Financial's long position.| Apollo Medical vs. American Eagle Outfitters | Apollo Medical vs. Entravision Communications | Apollo Medical vs. Chunghwa Telecom Co | Apollo Medical vs. Telecom Argentina SA |
| Synovus Financial vs. Cleanaway Waste Management | Synovus Financial vs. Mitsui Chemicals | Synovus Financial vs. Ultra Clean Holdings | Synovus Financial vs. Lamar Advertising |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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