Correlation Between CVR Medical and Synchrony Financial
Can any of the company-specific risk be diversified away by investing in both CVR Medical 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 CVR Medical and Synchrony Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Medical Corp and Synchrony Financial, you can compare the effects of market volatilities on CVR Medical 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 CVR Medical with a short position of Synchrony Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Medical and Synchrony Financial.
Diversification Opportunities for CVR Medical and Synchrony Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CVR and Synchrony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CVR Medical Corp and Synchrony Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchrony Financial and CVR 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 CVR Medical Corp 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 CVR Medical i.e., CVR Medical and Synchrony Financial go up and down completely randomly.
Pair Corralation between CVR Medical and Synchrony Financial
If you would invest 3,962 in Synchrony Financial on October 13, 2024 and sell it today you would earn a total of 2,383 from holding Synchrony Financial or generate 60.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVR Medical Corp vs. Synchrony Financial
Performance |
| Timeline |
| CVR Medical Corp |
| Synchrony Financial |
CVR Medical and Synchrony Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Medical and Synchrony Financial
The main advantage of trading using opposite CVR Medical and Synchrony Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Medical 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.| CVR Medical vs. Apple Inc | CVR Medical vs. Apple Inc | CVR Medical vs. Apple Inc | CVR Medical vs. Apple Inc |
| Synchrony Financial vs. Tyson Foods | Synchrony Financial vs. GWILLI FOOD | Synchrony Financial vs. CVR Medical Corp | Synchrony Financial vs. Diamyd Medical AB |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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