Correlation Between Synchrony Financial and ATT
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By analyzing existing cross correlation between Synchrony Financial and ATT Inc, you can compare the effects of market volatilities on Synchrony Financial and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synchrony Financial and ATT.
Diversification Opportunities for Synchrony Financial and ATT
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Synchrony and ATT is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Synchrony Financial and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of Synchrony Financial i.e., Synchrony Financial and ATT go up and down completely randomly.
Pair Corralation between Synchrony Financial and ATT
Assuming the 90 days horizon Synchrony Financial is expected to generate 2.0 times more return on investment than ATT. However, Synchrony Financial is 2.0 times more volatile than ATT Inc. It trades about 0.14 of its potential returns per unit of risk. ATT Inc is currently generating about 0.16 per unit of risk. If you would invest 4,608 in Synchrony Financial on October 25, 2024 and sell it today you would earn a total of 2,141 from holding Synchrony Financial or generate 46.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synchrony Financial vs. ATT Inc
Performance |
| Timeline |
| Synchrony Financial |
| ATT Inc |
Synchrony Financial and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synchrony Financial and ATT
The main advantage of trading using opposite Synchrony Financial and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synchrony Financial position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT's long position.| Synchrony Financial vs. SEALED AIR | Synchrony Financial vs. SOFI TECHNOLOGIES | Synchrony Financial vs. G III Apparel Group | Synchrony Financial vs. Easy Software AG |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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