Correlation Between Synovus Financial and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both Synovus Financial and JSC Halyk 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 JSC Halyk 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 JSC Halyk bank, you can compare the effects of market volatilities on Synovus Financial and JSC Halyk 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 JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and JSC Halyk.
Diversification Opportunities for Synovus Financial and JSC Halyk
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Synovus and JSC is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank 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 JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of Synovus Financial i.e., Synovus Financial and JSC Halyk go up and down completely randomly.
Pair Corralation between Synovus Financial and JSC Halyk
Assuming the 90 days trading horizon Synovus Financial Corp is expected to generate 0.54 times more return on investment than JSC Halyk. However, Synovus Financial Corp is 1.87 times less risky than JSC Halyk. It trades about 0.14 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.06 per unit of risk. If you would invest 3,286 in Synovus Financial Corp on October 13, 2024 and sell it today you would earn a total of 1,634 from holding Synovus Financial Corp or generate 49.73% 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. JSC Halyk bank
Performance |
| Timeline |
| Synovus Financial Corp |
| JSC Halyk bank |
Synovus Financial and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus Financial and JSC Halyk
The main advantage of trading using opposite Synovus Financial and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial position performs unexpectedly, JSC Halyk 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 JSC Halyk will offset losses from the drop in JSC Halyk'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 |
| JSC Halyk vs. Wayside Technology Group | JSC Halyk vs. Treasury Wine Estates | JSC Halyk vs. Align Technology | JSC Halyk vs. Casio Computer CoLtd |
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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |