Correlation Between Synovus Financial and BANNER
Can any of the company-specific risk be diversified away by investing in both Synovus Financial and BANNER 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 BANNER 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 BANNER, you can compare the effects of market volatilities on Synovus Financial and BANNER 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 BANNER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and BANNER.
Diversification Opportunities for Synovus Financial and BANNER
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Synovus and BANNER is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and BANNER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANNER 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 BANNER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANNER has no effect on the direction of Synovus Financial i.e., Synovus Financial and BANNER go up and down completely randomly.
Pair Corralation between Synovus Financial and BANNER
Assuming the 90 days trading horizon Synovus Financial Corp is expected to generate 1.06 times more return on investment than BANNER. However, Synovus Financial is 1.06 times more volatile than BANNER. It trades about -0.09 of its potential returns per unit of risk. BANNER is currently generating about -0.33 per unit of risk. If you would invest 5,211 in Synovus Financial Corp on October 10, 2024 and sell it today you would lose (161.00) from holding Synovus Financial Corp or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synovus Financial Corp vs. BANNER
Performance |
| Timeline |
| Synovus Financial Corp |
| BANNER |
Synovus Financial and BANNER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus Financial and BANNER
The main advantage of trading using opposite Synovus Financial and BANNER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial position performs unexpectedly, BANNER 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 BANNER will offset losses from the drop in BANNER's long position.| Synovus Financial vs. Fast Retailing Co | Synovus Financial vs. PPHE HOTEL GROUP | Synovus Financial vs. CARSALESCOM | Synovus Financial vs. Salesforce |
| BANNER vs. Quaker Chemical | BANNER vs. SEKISUI CHEMICAL | BANNER vs. X FAB Silicon Foundries | BANNER vs. Silicon Motion Technology |
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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