Correlation Between X-FAB Silicon and Synovus Financial
Can any of the company-specific risk be diversified away by investing in both X-FAB Silicon 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 X-FAB Silicon and Synovus Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X FAB Silicon Foundries and Synovus Financial Corp, you can compare the effects of market volatilities on X-FAB Silicon 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 X-FAB Silicon with a short position of Synovus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of X-FAB Silicon and Synovus Financial.
Diversification Opportunities for X-FAB Silicon and Synovus Financial
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between X-FAB and Synovus is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries 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 X-FAB Silicon 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 X FAB Silicon Foundries 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 X-FAB Silicon i.e., X-FAB Silicon and Synovus Financial go up and down completely randomly.
Pair Corralation between X-FAB Silicon and Synovus Financial
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to under-perform the Synovus Financial. In addition to that, X-FAB Silicon is 1.19 times more volatile than Synovus Financial Corp. It trades about -0.05 of its total potential returns per unit of risk. Synovus Financial Corp is currently generating about 0.09 per unit of volatility. If you would invest 2,476 in Synovus Financial Corp on October 16, 2024 and sell it today you would earn a total of 2,574 from holding Synovus Financial Corp or generate 103.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Synovus Financial Corp
Performance |
| Timeline |
| X FAB Silicon |
| Synovus Financial Corp |
X-FAB Silicon and Synovus Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X-FAB Silicon and Synovus Financial
The main advantage of trading using opposite X-FAB Silicon and Synovus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X-FAB Silicon 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.| X-FAB Silicon vs. NTG Nordic Transport | X-FAB Silicon vs. SPORT LISBOA E | X-FAB Silicon vs. SLR Investment Corp | X-FAB Silicon vs. Algonquin Power Utilities |
| Synovus Financial vs. X FAB Silicon Foundries | Synovus Financial vs. Easy Software AG | Synovus Financial vs. UPDATE SOFTWARE | Synovus Financial vs. FANDIFI TECHNOLOGY P |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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