Correlation Between Clean Energy and Synovus Financial
Can any of the company-specific risk be diversified away by investing in both Clean Energy and Synovus Financial 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 Clean Energy and Synovus Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Energy Fuels and Synovus Financial Corp, you can compare the effects of market volatilities on Clean Energy and Synovus Financial 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 Clean Energy with a short position of Synovus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and Synovus Financial.
Diversification Opportunities for Clean Energy and Synovus Financial
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Clean and Synovus is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels and Synovus Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synovus Financial Corp and Clean Energy 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 Clean Energy Fuels are associated (or correlated) with Synovus Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synovus Financial Corp has no effect on the direction of Clean Energy i.e., Clean Energy and Synovus Financial go up and down completely randomly.
Pair Corralation between Clean Energy and Synovus Financial
Assuming the 90 days horizon Clean Energy Fuels is expected to under-perform the Synovus Financial. In addition to that, Clean Energy is 1.45 times more volatile than Synovus Financial Corp. It trades about -0.01 of its total potential returns per unit of risk. Synovus Financial Corp is currently generating about 0.04 per unit of volatility. If you would invest 3,253 in Synovus Financial Corp on October 12, 2024 and sell it today you would earn a total of 1,667 from holding Synovus Financial Corp or generate 51.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Energy Fuels vs. Synovus Financial Corp
Performance |
| Timeline |
| Clean Energy Fuels |
| Synovus Financial Corp |
Clean Energy and Synovus Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and Synovus Financial
The main advantage of trading using opposite Clean Energy and Synovus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy position performs unexpectedly, Synovus Financial 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 Synovus Financial will offset losses from the drop in Synovus Financial's long position.| Clean Energy vs. BOS BETTER ONLINE | Clean Energy vs. ANGLO ASIAN MINING | Clean Energy vs. CSSC Offshore Marine | Clean Energy vs. CarsalesCom |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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