Correlation Between Synovus and Eastern
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By analyzing existing cross correlation between Synovus 59 percent and Eastern Co, you can compare the effects of market volatilities on Synovus and Eastern 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 with a short position of Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus and Eastern.
Diversification Opportunities for Synovus and Eastern
Weak diversification
The 3 months correlation between Synovus and Eastern is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Synovus 59 percent and Eastern Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern and Synovus 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 59 percent are associated (or correlated) with Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern has no effect on the direction of Synovus i.e., Synovus and Eastern go up and down completely randomly.
Pair Corralation between Synovus and Eastern
Assuming the 90 days trading horizon Synovus 59 percent is expected to under-perform the Eastern. But the bond apears to be less risky and, when comparing its historical volatility, Synovus 59 percent is 2.07 times less risky than Eastern. The bond trades about -0.18 of its potential returns per unit of risk. The Eastern Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,037 in Eastern Co on September 4, 2024 and sell it today you would lose (64.00) from holding Eastern Co or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Synovus 59 percent vs. Eastern Co
Performance |
| Timeline |
| Synovus 59 percent |
| Eastern |
Synovus and Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus and Eastern
The main advantage of trading using opposite Synovus and Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus position performs unexpectedly, Eastern 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 Eastern will offset losses from the drop in Eastern's long position.| Synovus vs. CECO Environmental Corp | Synovus vs. Herc Holdings | Synovus vs. U Haul Holding | Synovus vs. Maanshan Iron Steel |
| Eastern vs. AB SKF | Eastern vs. Aquagold International | Eastern vs. Thrivent High Yield | Eastern vs. Morningstar Unconstrained Allocation |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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