Correlation Between CHINA TONTINE and Synovus Financial

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Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE 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 CHINA TONTINE and Synovus Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA TONTINE WINES and Synovus Financial Corp, you can compare the effects of market volatilities on CHINA TONTINE 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 CHINA TONTINE with a short position of Synovus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and Synovus Financial.

Diversification Opportunities for CHINA TONTINE and Synovus Financial

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between CHINA and Synovus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES 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 CHINA TONTINE 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 CHINA TONTINE WINES 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 CHINA TONTINE i.e., CHINA TONTINE and Synovus Financial go up and down completely randomly.

Pair Corralation between CHINA TONTINE and Synovus Financial

If you would invest  7.00  in CHINA TONTINE WINES on October 8, 2024 and sell it today you would earn a total of  0.00  from holding CHINA TONTINE WINES or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy93.75%
ValuesDaily Returns

CHINA TONTINE WINES  vs.  Synovus Financial Corp

 Performance 
       Timeline  
CHINA TONTINE WINES 

Risk-Adjusted Performance

0 of 100

 
Weak
 
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Very Weak
Over the last 90 days CHINA TONTINE WINES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, CHINA TONTINE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Synovus Financial Corp 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Synovus Financial Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Synovus Financial reported solid returns over the last few months and may actually be approaching a breakup point.

CHINA TONTINE and Synovus Financial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CHINA TONTINE and Synovus Financial

The main advantage of trading using opposite CHINA TONTINE and Synovus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE 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.
The idea behind CHINA TONTINE WINES and Synovus Financial Corp 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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