Correlation Between Synchrony Financial and STAG Industrial,
Can any of the company-specific risk be diversified away by investing in both Synchrony Financial and STAG Industrial, 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 STAG Industrial, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synchrony Financial and STAG Industrial,, you can compare the effects of market volatilities on Synchrony Financial and STAG Industrial, 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 STAG Industrial,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synchrony Financial and STAG Industrial,.
Diversification Opportunities for Synchrony Financial and STAG Industrial,
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Synchrony and STAG is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Synchrony Financial and STAG Industrial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAG Industrial, 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 STAG Industrial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAG Industrial, has no effect on the direction of Synchrony Financial i.e., Synchrony Financial and STAG Industrial, go up and down completely randomly.
Pair Corralation between Synchrony Financial and STAG Industrial,
Assuming the 90 days trading horizon Synchrony Financial is expected to generate 0.76 times more return on investment than STAG Industrial,. However, Synchrony Financial is 1.32 times less risky than STAG Industrial,. It trades about 0.07 of its potential returns per unit of risk. STAG Industrial, is currently generating about -0.07 per unit of risk. If you would invest 39,999 in Synchrony Financial on October 30, 2024 and sell it today you would earn a total of 1,481 from holding Synchrony Financial or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synchrony Financial vs. STAG Industrial,
Performance |
| Timeline |
| Synchrony Financial |
| STAG Industrial, |
Synchrony Financial and STAG Industrial, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synchrony Financial and STAG Industrial,
The main advantage of trading using opposite Synchrony Financial and STAG Industrial, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synchrony Financial position performs unexpectedly, STAG Industrial, 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 STAG Industrial, will offset losses from the drop in STAG Industrial,'s long position.| Synchrony Financial vs. Raytheon Technologies | Synchrony Financial vs. Metalrgica Riosulense SA | Synchrony Financial vs. Cognizant Technology Solutions | Synchrony Financial vs. Caesars Entertainment, |
| STAG Industrial, vs. JB Hunt Transport | STAG Industrial, vs. G2D Investments | STAG Industrial, vs. Cognizant Technology Solutions | STAG Industrial, vs. Take Two Interactive Software |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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