Correlation Between Synchrony Swiss and Pictet Ch

Can any of the company-specific risk be diversified away by investing in both Synchrony Swiss and Pictet Ch 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 Synchrony Swiss and Pictet Ch into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Synchrony Swiss Real and Pictet Ch Precious, you can compare the effects of market volatilities on Synchrony Swiss and Pictet Ch 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 Swiss with a short position of Pictet Ch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synchrony Swiss and Pictet Ch.

Diversification Opportunities for Synchrony Swiss and Pictet Ch

-0.17

Correlation Coefficient

Synchrony Swiss  Pictet Ch

Good diversification

The 3 months correlation between Synchrony and Pictet is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Synchrony Swiss Real and Pictet Ch Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pictet Ch Precious and Synchrony Swiss 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 Swiss Real are associated (or correlated) with Pictet Ch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pictet Ch Precious has no effect on the direction of Synchrony Swiss i.e., Synchrony Swiss and Pictet Ch go up and down completely randomly.

Pair Corralation between Synchrony Swiss and Pictet Ch

Assuming the 90 days trading horizon Synchrony Swiss is expected to generate 2.57 times less return on investment than Pictet Ch. But when comparing it to its historical volatility, Synchrony Swiss Real is 1.67 times less risky than Pictet Ch. It trades about 0.06 of its potential returns per unit of risk. Pictet Ch Precious is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  17,535  in Pictet Ch Precious on September 27, 2024 and sell it today you would earn a total of  6,703  from holding Pictet Ch Precious or generate 38.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.53%
Values	Daily Returns

Synchrony Swiss Real  vs.  Pictet Ch Precious

Synchrony Swiss Real

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Synchrony Swiss Real are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite quite persistent forward-looking signals, Synchrony Swiss is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pictet Ch Precious

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pictet Ch Precious has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, Pictet Ch is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Synchrony Swiss and Pictet Ch

The main advantage of trading using opposite Synchrony Swiss and Pictet Ch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synchrony Swiss position performs unexpectedly, Pictet Ch 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 Pictet Ch will offset losses from the drop in Pictet Ch's long position.

The idea behind Synchrony Swiss Real and Pictet Ch Precious pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.