Correlation Between Synovus Financial and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both Synovus Financial and NTG Nordic 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 Synovus Financial and NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synovus Financial Corp and NTG Nordic Transport, you can compare the effects of market volatilities on Synovus Financial and NTG Nordic 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 Synovus Financial with a short position of NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and NTG Nordic.
Diversification Opportunities for Synovus Financial and NTG Nordic
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Synovus and NTG is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport and Synovus 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 Synovus Financial Corp are associated (or correlated) with NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of Synovus Financial i.e., Synovus Financial and NTG Nordic go up and down completely randomly.
Pair Corralation between Synovus Financial and NTG Nordic
Assuming the 90 days trading horizon Synovus Financial Corp is expected to generate 0.97 times more return on investment than NTG Nordic. However, Synovus Financial Corp is 1.03 times less risky than NTG Nordic. It trades about 0.05 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about 0.03 per unit of risk. If you would invest 3,409 in Synovus Financial Corp on September 3, 2024 and sell it today you would earn a total of 1,941 from holding Synovus Financial Corp or generate 56.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synovus Financial Corp vs. NTG Nordic Transport
Performance |
| Timeline |
| Synovus Financial Corp |
| NTG Nordic Transport |
Synovus Financial and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus Financial and NTG Nordic
The main advantage of trading using opposite Synovus Financial and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.| Synovus Financial vs. Fevertree Drinks PLC | Synovus Financial vs. METHODE ELECTRONICS | Synovus Financial vs. LPKF Laser Electronics | Synovus Financial vs. BYD ELECTRONIC |
| NTG Nordic vs. Kuehne Nagel International | NTG Nordic vs. ZTO EXPRESS | NTG Nordic vs. Superior Plus Corp | NTG Nordic vs. NMI 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |