Correlation Between Synovus Financial and CITIC DAMENG

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

Diversification Opportunities for Synovus Financial and CITIC DAMENG

0.0

Correlation Coefficient

Synovus Financial  CITIC DAMENG

Pay attention - limited upside

The 3 months correlation between Synovus and CITIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp and CITIC DAMENG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC DAMENG 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 CITIC DAMENG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC DAMENG has no effect on the direction of Synovus Financial i.e., Synovus Financial and CITIC DAMENG go up and down completely randomly.

Pair Corralation between Synovus Financial and CITIC DAMENG

If you would invest  4,920  in Synovus Financial Corp on October 26, 2024 and sell it today you would earn a total of  380.00  from holding Synovus Financial Corp or generate 7.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Synovus Financial Corp  vs.  CITIC DAMENG

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. In spite of comparatively uncertain basic indicators, Synovus Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

CITIC DAMENG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CITIC DAMENG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CITIC DAMENG is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Synovus Financial and CITIC DAMENG

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

The idea behind Synovus Financial Corp and CITIC DAMENG 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.