Correlation Between Synovus Financial and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both Synovus Financial and MEDICAL FACILITIES 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 MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on Synovus Financial and MEDICAL FACILITIES 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 MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and MEDICAL FACILITIES.
Diversification Opportunities for Synovus Financial and MEDICAL FACILITIES
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Synovus and MEDICAL is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW 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 MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of Synovus Financial i.e., Synovus Financial and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between Synovus Financial and MEDICAL FACILITIES
Assuming the 90 days trading horizon Synovus Financial is expected to generate 1.11 times less return on investment than MEDICAL FACILITIES. But when comparing it to its historical volatility, Synovus Financial Corp is 1.41 times less risky than MEDICAL FACILITIES. It trades about 0.11 of its potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 581.00 in MEDICAL FACILITIES NEW on November 9, 2024 and sell it today you would earn a total of 449.00 from holding MEDICAL FACILITIES NEW or generate 77.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synovus Financial Corp vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| Synovus Financial Corp |
| MEDICAL FACILITIES NEW |
Synovus Financial and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus Financial and MEDICAL FACILITIES
The main advantage of trading using opposite Synovus Financial and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| Synovus Financial vs. Cleanaway Waste Management | Synovus Financial vs. Mitsui Chemicals | Synovus Financial vs. Ultra Clean Holdings | Synovus Financial vs. Lamar Advertising |
| MEDICAL FACILITIES vs. CITIC Telecom International | MEDICAL FACILITIES vs. AGNC INVESTMENT | MEDICAL FACILITIES vs. Ribbon Communications | MEDICAL FACILITIES vs. Citic Telecom International |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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