Correlation Between Synovus Financial and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Synovus Financial and Planet Fitness 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 Planet Fitness 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 Planet Fitness, you can compare the effects of market volatilities on Synovus Financial and Planet Fitness 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 Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and Planet Fitness.
Diversification Opportunities for Synovus Financial and Planet Fitness
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Synovus and Planet is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness 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 Planet Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Fitness has no effect on the direction of Synovus Financial i.e., Synovus Financial and Planet Fitness go up and down completely randomly.
Pair Corralation between Synovus Financial and Planet Fitness
Assuming the 90 days trading horizon Synovus Financial Corp is expected to generate 0.97 times more return on investment than Planet Fitness. However, Synovus Financial Corp is 1.03 times less risky than Planet Fitness. It trades about 0.06 of its potential returns per unit of risk. Planet Fitness is currently generating about 0.04 per unit of risk. If you would invest 2,417 in Synovus Financial Corp on December 25, 2024 and sell it today you would earn a total of 1,903 from holding Synovus Financial Corp or generate 78.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synovus Financial Corp vs. Planet Fitness
Performance |
| Timeline |
| Synovus Financial Corp |
| Planet Fitness |
Synovus Financial and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus Financial and Planet Fitness
The main advantage of trading using opposite Synovus Financial and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial position performs unexpectedly, Planet Fitness 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 Planet Fitness will offset losses from the drop in Planet Fitness' long position.| Synovus Financial vs. Dairy Farm International | Synovus Financial vs. GOME Retail Holdings | Synovus Financial vs. AGRICULTBK HADR25 YC | Synovus Financial vs. National Retail Properties |
| Planet Fitness vs. Sligro Food Group | Planet Fitness vs. Sanyo Chemical Industries | Planet Fitness vs. Soken Chemical Engineering | Planet Fitness vs. TRI CHEMICAL LABORATINC |
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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