Correlation Between Synovus Financial and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both Synovus Financial and Carnegie Clean 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 Carnegie Clean 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 Carnegie Clean Energy, you can compare the effects of market volatilities on Synovus Financial and Carnegie Clean 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 Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and Carnegie Clean.
Diversification Opportunities for Synovus Financial and Carnegie Clean
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Synovus and Carnegie is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and Carnegie Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Clean Energy 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 Carnegie Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Clean Energy has no effect on the direction of Synovus Financial i.e., Synovus Financial and Carnegie Clean go up and down completely randomly.
Pair Corralation between Synovus Financial and Carnegie Clean
Assuming the 90 days trading horizon Synovus Financial Corp is expected to generate 0.83 times more return on investment than Carnegie Clean. However, Synovus Financial Corp is 1.2 times less risky than Carnegie Clean. It trades about 0.13 of its potential returns per unit of risk. Carnegie Clean Energy is currently generating about -0.11 per unit of risk. If you would invest 5,012 in Synovus Financial Corp on October 19, 2024 and sell it today you would earn a total of 238.00 from holding Synovus Financial Corp or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Synovus Financial Corp vs. Carnegie Clean Energy
Performance |
| Timeline |
| Synovus Financial Corp |
| Carnegie Clean Energy |
Synovus Financial and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus Financial and Carnegie Clean
The main advantage of trading using opposite Synovus Financial and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial position performs unexpectedly, Carnegie Clean 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 Carnegie Clean will offset losses from the drop in Carnegie Clean's long position.| Synovus Financial vs. PLAYTIKA HOLDING DL 01 | Synovus Financial vs. IMAGIN MEDICAL INC | Synovus Financial vs. Merit Medical Systems | Synovus Financial vs. ONWARD MEDICAL BV |
| Carnegie Clean vs. Synovus Financial Corp | Carnegie Clean vs. JSC Halyk bank | Carnegie Clean vs. Direct Line Insurance | Carnegie Clean vs. SUN LIFE FINANCIAL |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |