Correlation Between Dunedin Enterprise and Synchrony Financial
Can any of the company-specific risk be diversified away by investing in both Dunedin Enterprise 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 Dunedin Enterprise and Synchrony Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunedin Enterprise Investment and Synchrony Financial, you can compare the effects of market volatilities on Dunedin Enterprise 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 Dunedin Enterprise with a short position of Synchrony Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunedin Enterprise and Synchrony Financial.
Diversification Opportunities for Dunedin Enterprise and Synchrony Financial
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dunedin and Synchrony is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dunedin Enterprise Investment and Synchrony Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchrony Financial and Dunedin Enterprise 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 Dunedin Enterprise Investment 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 Dunedin Enterprise i.e., Dunedin Enterprise and Synchrony Financial go up and down completely randomly.
Pair Corralation between Dunedin Enterprise and Synchrony Financial
Assuming the 90 days trading horizon Dunedin Enterprise Investment is expected to under-perform the Synchrony Financial. In addition to that, Dunedin Enterprise is 2.24 times more volatile than Synchrony Financial. It trades about -0.09 of its total potential returns per unit of risk. Synchrony Financial is currently generating about 0.19 per unit of volatility. If you would invest 6,537 in Synchrony Financial on September 13, 2024 and sell it today you would earn a total of 326.00 from holding Synchrony Financial or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dunedin Enterprise Investment vs. Synchrony Financial
Performance |
| Timeline |
| Dunedin Enterprise |
| Synchrony Financial |
Dunedin Enterprise and Synchrony Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunedin Enterprise and Synchrony Financial
The main advantage of trading using opposite Dunedin Enterprise and Synchrony Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunedin Enterprise 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.| Dunedin Enterprise vs. National Bank of | Dunedin Enterprise vs. Cairo Communication SpA | Dunedin Enterprise vs. Sydbank | Dunedin Enterprise vs. Synchrony Financial |
| Synchrony Financial vs. Samsung Electronics Co | Synchrony Financial vs. Samsung Electronics Co | Synchrony Financial vs. Hyundai Motor | Synchrony Financial vs. Reliance Industries Ltd |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |