Correlation Between SYNCHRONY and Dow Jones
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By analyzing existing cross correlation between SYNCHRONY FINL 45 and Dow Jones Industrial, you can compare the effects of market volatilities on SYNCHRONY and Dow Jones 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 SYNCHRONY with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of SYNCHRONY and Dow Jones.
Diversification Opportunities for SYNCHRONY and Dow Jones
Very good diversification
The 3 months correlation between SYNCHRONY and Dow is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SYNCHRONY FINL 45 and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and SYNCHRONY 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 SYNCHRONY FINL 45 are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of SYNCHRONY i.e., SYNCHRONY and Dow Jones go up and down completely randomly.
Pair Corralation between SYNCHRONY and Dow Jones
Assuming the 90 days trading horizon SYNCHRONY is expected to generate 87.53 times less return on investment than Dow Jones. But when comparing it to its historical volatility, SYNCHRONY FINL 45 is 3.06 times less risky than Dow Jones. It trades about 0.01 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,811,148 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 662,509 from holding Dow Jones Industrial or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SYNCHRONY FINL 45 vs. Dow Jones Industrial
Performance |
| Timeline |
SYNCHRONY and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
SYNCHRONY FINL 45
Pair trading matchups for SYNCHRONY
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with SYNCHRONY and Dow Jones
The main advantage of trading using opposite SYNCHRONY and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SYNCHRONY position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| SYNCHRONY vs. Alvotech | SYNCHRONY vs. TFI International | SYNCHRONY vs. Franklin Credit Management | SYNCHRONY vs. Cumulus Media Class |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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