Correlation Between Synovus Financial and Canon Marketing

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Can any of the company-specific risk be diversified away by investing in both Synovus Financial and Canon Marketing 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 Canon Marketing 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 Canon Marketing Japan, you can compare the effects of market volatilities on Synovus Financial and Canon Marketing 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 Canon Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and Canon Marketing.

Diversification Opportunities for Synovus Financial and Canon Marketing

SynovusCanonDiversified AwaySynovusCanonDiversified Away100%
0.44
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Synovus and Canon is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and Canon Marketing Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Marketing Japan 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 Canon Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canon Marketing Japan has no effect on the direction of Synovus Financial i.e., Synovus Financial and Canon Marketing go up and down completely randomly.

Pair Corralation between Synovus Financial and Canon Marketing

Assuming the 90 days trading horizon Synovus Financial Corp is expected to generate 2.23 times more return on investment than Canon Marketing. However, Synovus Financial is 2.23 times more volatile than Canon Marketing Japan. It trades about 0.11 of its potential returns per unit of risk. Canon Marketing Japan is currently generating about 0.13 per unit of risk. If you would invest  4,426  in Synovus Financial Corp on October 27, 2024 and sell it today you would earn a total of  774.00  from holding Synovus Financial Corp or generate 17.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.36%
ValuesDaily Returns

Synovus Financial Corp  vs.  Canon Marketing Japan

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -5051015
JavaScript chart by amCharts 3.21.15SYU1 CNJ
       Timeline  
Synovus Financial Corp 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Synovus Financial Corp are ranked lower than 8 (%) 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan444648505254
Canon Marketing Japan 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Canon Marketing Japan are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Canon Marketing may actually be approaching a critical reversion point that can send shares even higher in February 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2728293031

Synovus Financial and Canon Marketing Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.22-6.15-4.09-2.030.02.084.236.388.5310.68 0.050.100.150.20
JavaScript chart by amCharts 3.21.15SYU1 CNJ
       Returns  

Pair Trading with Synovus Financial and Canon Marketing

The main advantage of trading using opposite Synovus Financial and Canon Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial position performs unexpectedly, Canon Marketing 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 Canon Marketing will offset losses from the drop in Canon Marketing's long position.
The idea behind Synovus Financial Corp and Canon Marketing Japan 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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