Correlation Between Franklin Credit and SYNCHRONY
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By analyzing existing cross correlation between Franklin Credit Management and SYNCHRONY FINL 45, you can compare the effects of market volatilities on Franklin Credit and SYNCHRONY 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 Franklin Credit with a short position of SYNCHRONY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and SYNCHRONY.
Diversification Opportunities for Franklin Credit and SYNCHRONY
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and SYNCHRONY is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and SYNCHRONY FINL 45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYNCHRONY FINL 45 and Franklin Credit 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 Franklin Credit Management are associated (or correlated) with SYNCHRONY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYNCHRONY FINL 45 has no effect on the direction of Franklin Credit i.e., Franklin Credit and SYNCHRONY go up and down completely randomly.
Pair Corralation between Franklin Credit and SYNCHRONY
Given the investment horizon of 90 days Franklin Credit Management is expected to under-perform the SYNCHRONY. In addition to that, Franklin Credit is 16.69 times more volatile than SYNCHRONY FINL 45. It trades about -0.11 of its total potential returns per unit of risk. SYNCHRONY FINL 45 is currently generating about -0.24 per unit of volatility. If you would invest 9,960 in SYNCHRONY FINL 45 on August 28, 2024 and sell it today you would lose (167.00) from holding SYNCHRONY FINL 45 or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Credit Management vs. SYNCHRONY FINL 45
Performance |
| Timeline |
| Franklin Credit Mana |
| SYNCHRONY FINL 45 |
Franklin Credit and SYNCHRONY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and SYNCHRONY
The main advantage of trading using opposite Franklin Credit and SYNCHRONY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, SYNCHRONY 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 will offset losses from the drop in SYNCHRONY's long position.| Franklin Credit vs. Invesco High Income | Franklin Credit vs. Blackrock Muniholdings Ny | Franklin Credit vs. MFS Investment Grade | Franklin Credit vs. Federated Premier Municipal |
| SYNCHRONY vs. Alvotech | SYNCHRONY vs. TFI International | SYNCHRONY vs. Franklin Credit Management | SYNCHRONY vs. Cumulus Media Class |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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