Correlation Between SAN MIGUEL and Synchrony Financial
Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL 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 SAN MIGUEL and Synchrony Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAN MIGUEL BREWERY and Synchrony Financial, you can compare the effects of market volatilities on SAN MIGUEL 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 SAN MIGUEL with a short position of Synchrony Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and Synchrony Financial.
Diversification Opportunities for SAN MIGUEL and Synchrony Financial
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SAN and Synchrony is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SAN MIGUEL BREWERY and Synchrony Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchrony Financial and SAN MIGUEL 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 SAN MIGUEL BREWERY 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 SAN MIGUEL i.e., SAN MIGUEL and Synchrony Financial go up and down completely randomly.
Pair Corralation between SAN MIGUEL and Synchrony Financial
If you would invest 10.00 in SAN MIGUEL BREWERY on November 7, 2024 and sell it today you would earn a total of 0.00 from holding SAN MIGUEL BREWERY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SAN MIGUEL BREWERY vs. Synchrony Financial
Performance |
| Timeline |
| SAN MIGUEL BREWERY |
| Synchrony Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
SAN MIGUEL and Synchrony Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAN MIGUEL and Synchrony Financial
The main advantage of trading using opposite SAN MIGUEL and Synchrony Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAN MIGUEL 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.| SAN MIGUEL vs. TERADATA | SAN MIGUEL vs. IMAGIN MEDICAL INC | SAN MIGUEL vs. MEDICAL FACILITIES NEW | SAN MIGUEL vs. NTT DATA |
| Synchrony Financial vs. CAL MAINE FOODS | Synchrony Financial vs. MeVis Medical Solutions | Synchrony Financial vs. US FOODS HOLDING | Synchrony Financial vs. Peijia Medical Limited |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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