Correlation Between Jupiter Fund and Synchrony Financial
Can any of the company-specific risk be diversified away by investing in both Jupiter Fund 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 Jupiter Fund and Synchrony Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jupiter Fund Management and Synchrony Financial, you can compare the effects of market volatilities on Jupiter Fund 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 Jupiter Fund with a short position of Synchrony Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Fund and Synchrony Financial.
Diversification Opportunities for Jupiter Fund and Synchrony Financial
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jupiter and Synchrony is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Fund Management and Synchrony Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchrony Financial and Jupiter Fund 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 Jupiter Fund Management 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 Jupiter Fund i.e., Jupiter Fund and Synchrony Financial go up and down completely randomly.
Pair Corralation between Jupiter Fund and Synchrony Financial
Assuming the 90 days trading horizon Jupiter Fund Management is expected to under-perform the Synchrony Financial. But the stock apears to be less risky and, when comparing its historical volatility, Jupiter Fund Management is 2.52 times less risky than Synchrony Financial. The stock trades about -0.05 of its potential returns per unit of risk. The Synchrony Financial is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 4,921 in Synchrony Financial on August 30, 2024 and sell it today you would earn a total of 1,757 from holding Synchrony Financial or generate 35.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Fund Management vs. Synchrony Financial
Performance |
| Timeline |
| Jupiter Fund Management |
| Synchrony Financial |
Jupiter Fund and Synchrony Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Fund and Synchrony Financial
The main advantage of trading using opposite Jupiter Fund and Synchrony Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Fund 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.| Jupiter Fund vs. Toyota Motor Corp | Jupiter Fund vs. Neometals | Jupiter Fund vs. Coor Service Management | Jupiter Fund vs. JPMorgan ETFs ICAV |
| Synchrony Financial vs. Lendinvest PLC | Synchrony Financial vs. Neometals | Synchrony Financial vs. Albion Technology General | Synchrony Financial vs. Jupiter Fund Management |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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