Correlation Between Synovus Financial and Hermès International
Can any of the company-specific risk be diversified away by investing in both Synovus Financial and Hermès International 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 Hermès International 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 Herms International Socit, you can compare the effects of market volatilities on Synovus Financial and Hermès International 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 Hermès International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and Hermès International.
Diversification Opportunities for Synovus Financial and Hermès International
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Synovus and Hermès is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and Herms International Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herms International Socit 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 Hermès International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Herms International Socit has no effect on the direction of Synovus Financial i.e., Synovus Financial and Hermès International go up and down completely randomly.
Pair Corralation between Synovus Financial and Hermès International
Assuming the 90 days trading horizon Synovus Financial is expected to generate 1.67 times less return on investment than Hermès International. In addition to that, Synovus Financial is 1.48 times more volatile than Herms International Socit. It trades about 0.23 of its total potential returns per unit of risk. Herms International Socit is currently generating about 0.56 per unit of volatility. If you would invest 234,400 in Herms International Socit on November 7, 2024 and sell it today you would earn a total of 36,700 from holding Herms International Socit or generate 15.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Synovus Financial Corp vs. Herms International Socit
Performance |
| Timeline |
| Synovus Financial Corp |
| Herms International Socit |
Synovus Financial and Hermès International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus Financial and Hermès International
The main advantage of trading using opposite Synovus Financial and Hermès International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial position performs unexpectedly, Hermès International 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 Hermès International will offset losses from the drop in Hermès International's long position.| Synovus Financial vs. Air Transport Services | Synovus Financial vs. The Trade Desk | Synovus Financial vs. MARKET VECTR RETAIL | Synovus Financial vs. Aluminum of |
| Hermès International vs. LVMH Mot Hennessy | Hermès International vs. LVMH Mot Hennessy | Hermès International vs. LVMH Mot Hennessy | Hermès International vs. CHRISTIAN DIOR ADR14EO2 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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