Correlation Between Synovus Financial and SmartFinancial,

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

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

Diversification Opportunities for Synovus Financial and SmartFinancial,

0.98

Correlation Coefficient

Synovus Financial  SmartFinancial,

Almost no diversification

The 3 months correlation between Synovus and SmartFinancial, is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and SmartFinancial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartFinancial, and Synovus Financial 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 Synovus Financial Corp are associated (or correlated) with SmartFinancial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartFinancial, has no effect on the direction of Synovus Financial i.e., Synovus Financial and SmartFinancial, go up and down completely randomly.

Pair Corralation between Synovus Financial and SmartFinancial,

Considering the 90-day investment horizon Synovus Financial Corp is expected to generate 1.24 times more return on investment than SmartFinancial,. However, Synovus Financial is 1.24 times more volatile than SmartFinancial,. It trades about -0.36 of its potential returns per unit of risk. SmartFinancial, is currently generating about -0.54 per unit of risk. If you would invest  5,719  in Synovus Financial Corp on September 23, 2024 and sell it today you would lose (684.00) from holding Synovus Financial Corp or give up 11.96% of portfolio value over 90 days.

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

Synovus Financial Corp  vs.  SmartFinancial,

Synovus Financial Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Synovus Financial Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Synovus Financial showed solid returns over the last few months and may actually be approaching a breakup point.

SmartFinancial,

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SmartFinancial, are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental drivers, SmartFinancial, may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Synovus Financial and SmartFinancial,

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

The idea behind Synovus Financial Corp and SmartFinancial, 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.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.