Correlation Between Siamgas and Synovus Financial
Can any of the company-specific risk be diversified away by investing in both Siamgas 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 Siamgas and Synovus Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siamgas And Petrochemicals and Synovus Financial Corp, you can compare the effects of market volatilities on Siamgas 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 Siamgas with a short position of Synovus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Synovus Financial.
Diversification Opportunities for Siamgas and Synovus Financial
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siamgas and Synovus is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals 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 Siamgas 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 Siamgas And Petrochemicals 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 Siamgas i.e., Siamgas and Synovus Financial go up and down completely randomly.
Pair Corralation between Siamgas and Synovus Financial
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 1.19 times more return on investment than Synovus Financial. However, Siamgas is 1.19 times more volatile than Synovus Financial Corp. It trades about 0.01 of its potential returns per unit of risk. Synovus Financial Corp is currently generating about -0.17 per unit of risk. If you would invest 18.00 in Siamgas And Petrochemicals on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Siamgas And Petrochemicals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. Synovus Financial Corp
Performance |
| Timeline |
| Siamgas And Petroche |
| Synovus Financial Corp |
Siamgas and Synovus Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Synovus Financial
The main advantage of trading using opposite Siamgas and Synovus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas 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.| Siamgas vs. DIVERSIFIED ROYALTY | Siamgas vs. Guangdong Investment Limited | Siamgas vs. Eidesvik Offshore ASA | Siamgas vs. Information Services International Dentsu |
| Synovus Financial vs. Digilife Technologies Limited | Synovus Financial vs. Siamgas And Petrochemicals | Synovus Financial vs. Soken Chemical Engineering | Synovus Financial vs. Mitsubishi Gas Chemical |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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