Correlation Between Synovus Financial and Anglo American
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By analyzing existing cross correlation between Synovus Financial Corp and Anglo American plc, you can compare the effects of market volatilities on Synovus Financial and Anglo American 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 Anglo American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and Anglo American.
Diversification Opportunities for Synovus Financial and Anglo American
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Synovus and Anglo is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and Anglo American plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo American plc 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 Anglo American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo American plc has no effect on the direction of Synovus Financial i.e., Synovus Financial and Anglo American go up and down completely randomly.
Pair Corralation between Synovus Financial and Anglo American
Assuming the 90 days trading horizon Synovus Financial Corp is expected to generate 0.99 times more return on investment than Anglo American. However, Synovus Financial Corp is 1.01 times less risky than Anglo American. It trades about 0.24 of its potential returns per unit of risk. Anglo American plc is currently generating about -0.05 per unit of risk. If you would invest 4,940 in Synovus Financial Corp on November 3, 2024 and sell it today you would earn a total of 460.00 from holding Synovus Financial Corp or generate 9.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synovus Financial Corp vs. Anglo American plc
Performance |
| Timeline |
| Synovus Financial Corp |
| Anglo American plc |
Synovus Financial and Anglo American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus Financial and Anglo American
The main advantage of trading using opposite Synovus Financial and Anglo American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial position performs unexpectedly, Anglo American 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 Anglo American will offset losses from the drop in Anglo American's long position.| Synovus Financial vs. SIVERS SEMICONDUCTORS AB | Synovus Financial vs. NorAm Drilling AS | Synovus Financial vs. Volkswagen AG | Synovus Financial vs. Darden Restaurants |
| Anglo American vs. PACIFIC ONLINE | Anglo American vs. URBAN OUTFITTERS | Anglo American vs. Highlight Communications AG | Anglo American vs. China Communications Services |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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