Correlation Between Synovus Financial and Astral Foods
Can any of the company-specific risk be diversified away by investing in both Synovus Financial and Astral Foods 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 Astral Foods 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 Astral Foods Limited, you can compare the effects of market volatilities on Synovus Financial and Astral Foods 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 Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and Astral Foods.
Diversification Opportunities for Synovus Financial and Astral Foods
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Synovus and Astral is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and Astral Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astral Foods Limited 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 Astral Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astral Foods Limited has no effect on the direction of Synovus Financial i.e., Synovus Financial and Astral Foods go up and down completely randomly.
Pair Corralation between Synovus Financial and Astral Foods
Assuming the 90 days trading horizon Synovus Financial Corp is expected to generate 1.14 times more return on investment than Astral Foods. However, Synovus Financial is 1.14 times more volatile than Astral Foods Limited. It trades about -0.06 of its potential returns per unit of risk. Astral Foods Limited is currently generating about -0.12 per unit of risk. If you would invest 5,161 in Synovus Financial Corp on October 11, 2024 and sell it today you would lose (111.00) from holding Synovus Financial Corp or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synovus Financial Corp vs. Astral Foods Limited
Performance |
| Timeline |
| Synovus Financial Corp |
| Astral Foods Limited |
Synovus Financial and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus Financial and Astral Foods
The main advantage of trading using opposite Synovus Financial and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial position performs unexpectedly, Astral Foods 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 Astral Foods will offset losses from the drop in Astral Foods' long position.| Synovus Financial vs. Digilife Technologies Limited | Synovus Financial vs. Siamgas And Petrochemicals | Synovus Financial vs. Soken Chemical Engineering | Synovus Financial vs. Mitsubishi Gas Chemical |
| Astral Foods vs. BORR DRILLING NEW | Astral Foods vs. Virtu Financial | Astral Foods vs. SOUTHWEST AIRLINES | Astral Foods vs. Synovus 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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