Correlation Between Immofonds and Synchrony Swiss

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

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

Diversification Opportunities for Immofonds and Synchrony Swiss

0.81

Correlation Coefficient

Immofonds  Synchrony Swiss

Very poor diversification

The 3 months correlation between Immofonds and Synchrony is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Immofonds and Synchrony Swiss Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchrony Swiss Real and Immofonds 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 Immofonds are associated (or correlated) with Synchrony Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synchrony Swiss Real has no effect on the direction of Immofonds i.e., Immofonds and Synchrony Swiss go up and down completely randomly.

Pair Corralation between Immofonds and Synchrony Swiss

Assuming the 90 days horizon Immofonds is expected to generate 1.05 times less return on investment than Synchrony Swiss. In addition to that, Immofonds is 1.75 times more volatile than Synchrony Swiss Real. It trades about 0.04 of its total potential returns per unit of risk. Synchrony Swiss Real is currently generating about 0.07 per unit of volatility. If you would invest  10,579  in Synchrony Swiss Real on October 5, 2024 and sell it today you would earn a total of  1,761  from holding Synchrony Swiss Real or generate 16.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Immofonds  vs.  Synchrony Swiss Real

Immofonds

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Immofonds has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly sluggish basic indicators, Immofonds may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Synchrony Swiss Real

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Synchrony Swiss Real has generated negative risk-adjusted returns adding no value to fund investors. 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.

Pair Trading with Immofonds and Synchrony Swiss

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

The idea behind Immofonds and Synchrony Swiss Real 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.