Correlation Between Athene Holding and Synovus Financial
Can any of the company-specific risk be diversified away by investing in both Athene Holding 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 Athene Holding and Synovus Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athene Holding and Synovus Financial Corp, you can compare the effects of market volatilities on Athene Holding 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 Athene Holding with a short position of Synovus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and Synovus Financial.
Diversification Opportunities for Athene Holding and Synovus Financial
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Athene and Synovus is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding 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 Athene Holding 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 Athene Holding 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 Athene Holding i.e., Athene Holding and Synovus Financial go up and down completely randomly.
Pair Corralation between Athene Holding and Synovus Financial
Assuming the 90 days trading horizon Athene Holding is expected to generate 1.94 times more return on investment than Synovus Financial. However, Athene Holding is 1.94 times more volatile than Synovus Financial Corp. It trades about 0.1 of its potential returns per unit of risk. Synovus Financial Corp is currently generating about 0.13 per unit of risk. If you would invest 2,310 in Athene Holding on September 3, 2024 and sell it today you would earn a total of 260.00 from holding Athene Holding or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athene Holding vs. Synovus Financial Corp
Performance |
| Timeline |
| Athene Holding |
| Synovus Financial Corp |
Athene Holding and Synovus Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athene Holding and Synovus Financial
The main advantage of trading using opposite Athene Holding and Synovus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athene Holding 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.| Athene Holding vs. FAT Brands | Athene Holding vs. Fortress Biotech Pref | Athene Holding vs. Fulton Financial | Athene Holding vs. Aquagold International |
| Synovus Financial vs. MNB Holdings Corp | Synovus Financial vs. Harbor Bankshares | Synovus Financial vs. Oconee Financial | Synovus Financial vs. Mission Valley Bancorp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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