Correlation Between Shriram Finance and Synchrony Financial
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By analyzing existing cross correlation between Shriram Finance Limited and Synchrony Financial, you can compare the effects of market volatilities on Shriram Finance and Synchrony 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 Shriram Finance with a short position of Synchrony Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shriram Finance and Synchrony Financial.
Diversification Opportunities for Shriram Finance and Synchrony Financial
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shriram and Synchrony is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shriram Finance Limited and Synchrony Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchrony Financial and Shriram Finance 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 Shriram Finance Limited are associated (or correlated) with Synchrony Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synchrony Financial has no effect on the direction of Shriram Finance i.e., Shriram Finance and Synchrony Financial go up and down completely randomly.
Pair Corralation between Shriram Finance and Synchrony Financial
Assuming the 90 days trading horizon Shriram Finance Limited is expected to generate 1.05 times more return on investment than Synchrony Financial. However, Shriram Finance is 1.05 times more volatile than Synchrony Financial. It trades about 0.05 of its potential returns per unit of risk. Synchrony Financial is currently generating about 0.04 per unit of risk. If you would invest 64,550 in Shriram Finance Limited on July 18, 2025 and sell it today you would earn a total of 3,165 from holding Shriram Finance Limited or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shriram Finance Limited vs. Synchrony Financial
Performance |
| Timeline |
| Shriram Finance |
| Synchrony Financial |
Shriram Finance and Synchrony Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shriram Finance and Synchrony Financial
The main advantage of trading using opposite Shriram Finance and Synchrony Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shriram Finance position performs unexpectedly, Synchrony 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 Synchrony Financial will offset losses from the drop in Synchrony Financial's long position.| Shriram Finance vs. Blue Coast Hotels | Shriram Finance vs. Take Solutions Limited | Shriram Finance vs. Gayatri Highways Limited | Shriram Finance vs. Jindal Photo Limited |
| Synchrony Financial vs. Ally Financial | Synchrony Financial vs. Synchrony Financial | Synchrony Financial vs. Western Union Co | Synchrony Financial vs. Bread Financial Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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