Correlation Between Xinhua Winshare and Synovus Financial

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

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

Diversification Opportunities for Xinhua Winshare and Synovus Financial

0.11

Correlation Coefficient

Xinhua Winshare  Synovus Financial

Average diversification

The 3 months correlation between Xinhua and Synovus is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing 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 Xinhua Winshare 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 Xinhua Winshare Publishing 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 Xinhua Winshare i.e., Xinhua Winshare and Synovus Financial go up and down completely randomly.

Pair Corralation between Xinhua Winshare and Synovus Financial

Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 1.3 times more return on investment than Synovus Financial. However, Xinhua Winshare is 1.3 times more volatile than Synovus Financial Corp. It trades about 0.18 of its potential returns per unit of risk. Synovus Financial Corp is currently generating about -0.04 per unit of risk. If you would invest  113.00  in Xinhua Winshare Publishing on October 25, 2024 and sell it today you would earn a total of  17.00  from holding Xinhua Winshare Publishing or generate 15.04% return on investment over 90 days.

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

Xinhua Winshare Publishing  vs.  Synovus Financial Corp

Xinhua Winshare Publ

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Xinhua Winshare Publishing are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Xinhua Winshare may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Synovus Financial Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Synovus Financial Corp are ranked lower than 9 (%) 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.

Pair Trading with Xinhua Winshare and Synovus Financial

The main advantage of trading using opposite Xinhua Winshare and Synovus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare 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 Xinhua Winshare Publishing 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.