Correlation Between Synchrony Financial and FUTURE GAMING
Can any of the company-specific risk be diversified away by investing in both Synchrony Financial and FUTURE GAMING 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 FUTURE GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synchrony Financial and FUTURE GAMING GRP, you can compare the effects of market volatilities on Synchrony Financial and FUTURE GAMING 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 FUTURE GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synchrony Financial and FUTURE GAMING.
Diversification Opportunities for Synchrony Financial and FUTURE GAMING
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Synchrony and FUTURE is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Synchrony Financial and FUTURE GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURE GAMING GRP 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 FUTURE GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURE GAMING GRP has no effect on the direction of Synchrony Financial i.e., Synchrony Financial and FUTURE GAMING go up and down completely randomly.
Pair Corralation between Synchrony Financial and FUTURE GAMING
Assuming the 90 days horizon Synchrony Financial is expected to generate 0.47 times more return on investment than FUTURE GAMING. However, Synchrony Financial is 2.11 times less risky than FUTURE GAMING. It trades about 0.14 of its potential returns per unit of risk. FUTURE GAMING GRP is currently generating about -0.28 per unit of risk. If you would invest 6,298 in Synchrony Financial on November 4, 2024 and sell it today you would earn a total of 334.00 from holding Synchrony Financial or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Synchrony Financial vs. FUTURE GAMING GRP
Performance |
| Timeline |
| Synchrony Financial |
| FUTURE GAMING GRP |
Synchrony Financial and FUTURE GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synchrony Financial and FUTURE GAMING
The main advantage of trading using opposite Synchrony Financial and FUTURE GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synchrony Financial position performs unexpectedly, FUTURE GAMING 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 FUTURE GAMING will offset losses from the drop in FUTURE GAMING's long position.| Synchrony Financial vs. SCANSOURCE | Synchrony Financial vs. Sixt Leasing SE | Synchrony Financial vs. MOVIE GAMES SA | Synchrony Financial vs. GigaMedia |
| FUTURE GAMING vs. TELECOM ITALRISP ADR10 | FUTURE GAMING vs. Check Point Software | FUTURE GAMING vs. Charter Communications | FUTURE GAMING vs. Spirent Communications plc |
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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