Correlation Between Synovus Financial and PKSHA TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Synovus Financial and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC, you can compare the effects of market volatilities on Synovus Financial and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and PKSHA TECHNOLOGY.
Diversification Opportunities for Synovus Financial and PKSHA TECHNOLOGY
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Synovus and PKSHA is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and PKSHA TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKSHA TECHNOLOGY INC 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 PKSHA TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKSHA TECHNOLOGY INC has no effect on the direction of Synovus Financial i.e., Synovus Financial and PKSHA TECHNOLOGY go up and down completely randomly.
Pair Corralation between Synovus Financial and PKSHA TECHNOLOGY
Assuming the 90 days trading horizon Synovus Financial Corp is expected to under-perform the PKSHA TECHNOLOGY. But the stock apears to be less risky and, when comparing its historical volatility, Synovus Financial Corp is 2.02 times less risky than PKSHA TECHNOLOGY. The stock trades about -0.12 of its potential returns per unit of risk. The PKSHA TECHNOLOGY INC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,280 in PKSHA TECHNOLOGY INC on October 12, 2024 and sell it today you would earn a total of 40.00 from holding PKSHA TECHNOLOGY INC or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synovus Financial Corp vs. PKSHA TECHNOLOGY INC
Performance |
| Timeline |
| Synovus Financial Corp |
| PKSHA TECHNOLOGY INC |
Synovus Financial and PKSHA TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus Financial and PKSHA TECHNOLOGY
The main advantage of trading using opposite Synovus Financial and PKSHA TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial position performs unexpectedly, PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY will offset losses from the drop in PKSHA TECHNOLOGY's long position.| Synovus Financial vs. SLR Investment Corp | Synovus Financial vs. Ultra Clean Holdings | Synovus Financial vs. Clean Energy Fuels | Synovus Financial vs. Guangdong Investment Limited |
| PKSHA TECHNOLOGY vs. Virtu Financial | PKSHA TECHNOLOGY vs. Synovus Financial Corp | PKSHA TECHNOLOGY vs. Air Lease | PKSHA TECHNOLOGY vs. Cincinnati Financial Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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