Correlation Between Synchrony Financial and NRG Energy,
Can any of the company-specific risk be diversified away by investing in both Synchrony Financial and NRG Energy, 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 Synchrony Financial and NRG Energy, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synchrony Financial and NRG Energy,, you can compare the effects of market volatilities on Synchrony Financial and NRG Energy, 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 Synchrony Financial with a short position of NRG Energy,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synchrony Financial and NRG Energy,.
Diversification Opportunities for Synchrony Financial and NRG Energy,
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Synchrony and NRG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Synchrony Financial and NRG Energy, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRG Energy, and Synchrony Financial 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 Synchrony Financial are associated (or correlated) with NRG Energy,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRG Energy, has no effect on the direction of Synchrony Financial i.e., Synchrony Financial and NRG Energy, go up and down completely randomly.
Pair Corralation between Synchrony Financial and NRG Energy,
If you would invest 18,832 in Synchrony Financial on October 29, 2024 and sell it today you would earn a total of 22,568 from holding Synchrony Financial or generate 119.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Synchrony Financial vs. NRG Energy,
Performance |
| Timeline |
| Synchrony Financial |
| NRG Energy, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Synchrony Financial and NRG Energy, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synchrony Financial and NRG Energy,
The main advantage of trading using opposite Synchrony Financial and NRG Energy, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synchrony Financial position performs unexpectedly, NRG Energy, 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 NRG Energy, will offset losses from the drop in NRG Energy,'s long position.| Synchrony Financial vs. United Airlines Holdings | Synchrony Financial vs. STAG Industrial, | Synchrony Financial vs. METISA Metalrgica Timboense | Synchrony Financial vs. Globus Medical, |
| NRG Energy, vs. Electronic Arts | NRG Energy, vs. Micron Technology | NRG Energy, vs. Extra Space Storage | NRG Energy, vs. United Airlines Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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