Correlation Between GREENX METALS and Synchrony Financial
Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and Synchrony Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Synchrony Financial, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of Synchrony Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Synchrony Financial.
Diversification Opportunities for GREENX METALS and Synchrony Financial
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GREENX and Synchrony is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Synchrony Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchrony Financial and GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and Synchrony Financial go up and down completely randomly.
Pair Corralation between GREENX METALS and Synchrony Financial
Assuming the 90 days trading horizon GREENX METALS is expected to generate 2.2 times less return on investment than Synchrony Financial. In addition to that, GREENX METALS is 2.19 times more volatile than Synchrony Financial. It trades about 0.02 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 3,213 in Synchrony Financial on October 18, 2024 and sell it today you would earn a total of 3,388 from holding Synchrony Financial or generate 105.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
GREENX METALS LTD vs. Synchrony Financial
Performance |
| Timeline |
| GREENX METALS LTD |
| Synchrony Financial |
GREENX METALS and Synchrony Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Synchrony Financial
The main advantage of trading using opposite GREENX METALS and Synchrony Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. Meiko Electronics Co | GREENX METALS vs. COSMOSTEEL HLDGS | GREENX METALS vs. STORE ELECTRONIC | GREENX METALS vs. STMICROELECTRONICS |
| Synchrony Financial vs. Xinhua Winshare Publishing | Synchrony Financial vs. GRIFFIN MINING LTD | Synchrony Financial vs. GREENX METALS LTD | Synchrony Financial vs. Perseus Mining Limited |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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