Correlation Between SentinelOne and Synovus Financial

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

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

Diversification Opportunities for SentinelOne and Synovus Financial

0.89

Correlation Coefficient

SentinelOne  Synovus Financial

Very poor diversification

The 3 months correlation between SentinelOne and Synovus is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne 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 SentinelOne 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 SentinelOne 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 SentinelOne i.e., SentinelOne and Synovus Financial go up and down completely randomly.

Pair Corralation between SentinelOne and Synovus Financial

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Synovus Financial. In addition to that, SentinelOne is 1.17 times more volatile than Synovus Financial Corp. It trades about -0.11 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  4,878  in Synovus Financial Corp on December 24, 2024 and sell it today you would lose (558.00) from holding Synovus Financial Corp or give up 11.44% of portfolio value over 90 days.

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

SentinelOne  vs.  Synovus Financial Corp

SentinelOne

Risk-Adjusted Performance

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Synovus Financial Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Synovus Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with SentinelOne and Synovus Financial

The main advantage of trading using opposite SentinelOne and Synovus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne 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 SentinelOne 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.