Correlation Between Synovus Financial and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Synovus Financial and BANK MANDIRI 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 BANK MANDIRI 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 BANK MANDIRI, you can compare the effects of market volatilities on Synovus Financial and BANK MANDIRI 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 BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and BANK MANDIRI.
Diversification Opportunities for Synovus Financial and BANK MANDIRI
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Synovus and BANK is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI 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 BANK MANDIRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK MANDIRI has no effect on the direction of Synovus Financial i.e., Synovus Financial and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Synovus Financial and BANK MANDIRI
Assuming the 90 days trading horizon Synovus Financial is expected to generate 1.74 times less return on investment than BANK MANDIRI. But when comparing it to its historical volatility, Synovus Financial Corp is 4.53 times less risky than BANK MANDIRI. It trades about 0.28 of its potential returns per unit of risk. BANK MANDIRI is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 29.00 in BANK MANDIRI on October 20, 2024 and sell it today you would earn a total of 3.00 from holding BANK MANDIRI or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synovus Financial Corp vs. BANK MANDIRI
Performance |
| Timeline |
| Synovus Financial Corp |
| BANK MANDIRI |
Synovus Financial and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus Financial and BANK MANDIRI
The main advantage of trading using opposite Synovus Financial and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial position performs unexpectedly, BANK MANDIRI 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 BANK MANDIRI will offset losses from the drop in BANK MANDIRI'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 |
| BANK MANDIRI vs. Discover Financial Services | BANK MANDIRI vs. Synovus Financial Corp | BANK MANDIRI vs. CITY OFFICE REIT | BANK MANDIRI vs. Synchrony 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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