Synchrony Financial Stock Volatility

SYF Stock  USD 66.19  0.68  1.04%   
Synchrony Financial continues to exhibit relatively low price volatility over the last 3 months. Synchrony Financial indicates a Sharpe ratio of -0.17, indicating negative risk-adjusted returns over the last 3 months. The current setup includes 24 technical indicators relevant to risk behavior.

Sharpe Ratio = -0.169

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Negative ReturnsSYF
Latest disclosures for Synchrony Financial show a Market Risk Adjusted Performance of -0.2%, a Risk of 2.28, and a Risk Adjusted Performance of -0.1%. Based on monthly moving average Synchrony Financial is not performing at its full potential. However, if added to a well-diversified portfolio the total return can be enhanced and market risk can be reduced.
Key indicators related to Synchrony Financial's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
Synchrony Financial Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Synchrony daily returns, and it is calculated using variance and standard deviation.

Volatility Strategy

Synchrony Financial price volatility may influence cost basis positioning and portfolio weighting over time. Price retracements and recoveries can alter allocation balance. Current statistical measures show total volatility near 2.28% with a beta coefficient of 1.63, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of -0.17, evaluates return per unit of total risk. An alpha value of -0.16 reflects performance relative to systematic market exposure. Expected return estimates near -0.39% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Competitive positioning may influence variability.

Main indicators related to Synchrony Financial's market risk premium analysis include:

 Beta
1.63
 Alpha
-0.16
 Risk
2.28
 Sharpe Ratio
-0.17
 Expected Return
-0.39

Moving together with Synchrony Stock

  0.93AXP American ExpressPairCorr
  0.76LFS Latitude Group HoldingsPairCorr

Moving against Synchrony Stock

  0.85ESLT Elbit SystemsPairCorr
  0.83NLST NetlistPairCorr
  0.82BAESY BAE Systems PLCPairCorr
  0.74HYMTF Hyundai MotorPairCorr
  0.71NPSKY NSK Ltd ADRPairCorr
  0.69SBRA Sabra Healthcare REITPairCorr
  0.62TSSI TSS Common StockPairCorr
  0.62TTNMF Toho TitaniumPairCorr
  0.61NHNCF NAVER CorpPairCorr
  0.52JRFIF Japan MetropolitanPairCorr

Sensitivity To Market

Synchrony Financial beta coefficient measures the volatility of Synchrony stock relative to the systematic risk of the overall market benchmark. Mathematically, beta represents the slope of the regression line comparing Synchrony returns against market returns. A beta of 1.63 indicates the degree of sensitivity to market-wide movements. Current total volatility is approximately 2.28%.Synchrony Financial has shown noticeable price swings over the selected period. Downside deviation is about 0.0% and standard deviation is about 2.23%, which summarize how widely returns have moved. Options markets imply a forward-looking volatility estimate near 50.0%. This indicates expectations for moderate future movement relative to historical averages. Stock volatility often clusters, meaning high-volatility periods can come in waves.
Check current 90 days Synchrony Financial correlation with market (Dow Jones Industrial)
α-0.1644   β1.63
3 Months Beta |Analyze Synchrony Financial Demand Trend
Check current 90 days Synchrony Financial correlation with market (Dow Jones Industrial)

Downside Risk

Synchrony standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low.
Standard Deviation
    
  2.28  
It is essential to understand the difference between upside risk (as represented by Synchrony Financial's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Synchrony Financial's daily returns or price. Latest disclosures for Synchrony Financial show a Maximum Drawdown of 10.82.

Using Synchrony Put Option to Manage Risk Based on 2026-06-18 Contracts

Latest disclosures for Synchrony Financial show an Option Implied Volatility of 0.50 and an Option Max Pain Price of 65. Put options written on Synchrony Financial grant holders of the option the right to sell a specified amount of Synchrony Financial at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Synchrony Stock cannot fall below.

Synchrony Financial's PUT expiring on 2026-06-18

   Profit   
       Synchrony Financial Price At Expiration  

Current Synchrony Financial Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
SYF260618P00022500-0.0530050.001716172026-06-180.0 - 2.150.0View
Put
SYF260618P00025000-0.0352940.001772472026-06-180.0 - 0.80.0View
Put
SYF260618P00027500-0.0374980.002071122026-06-180.0 - 0.750.0View
Put
SYF260618P00030000-0.0412930.00245422026-06-180.0 - 0.750.0View
Put
SYF260618P00032500-0.0454080.00290312026-06-180.0 - 0.750.0View
Put
SYF260618P00035000-0.0499140.00343712026-06-180.0 - 0.750.0View
Put
SYF260618P00037500-0.0370550.0034312026-06-180.05 - 0.750.0View
Put
SYF260618P00040000-0.0218790.002919222026-06-180.05 - 0.350.0View
Put
SYF260618P00042500-0.0375290.004535422026-06-180.05 - 0.550.0View
Put
SYF260618P00045000-0.0484140.005957442026-06-180.1 - 0.650.0View
Put
SYF260618P00047500-0.0629460.0078332432026-06-180.2 - 0.750.0View
View All Synchrony Financial Options

Stock Volatility Analysis

Volatility refers to the frequency at which Synchrony Financial stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Synchrony Financial's price changes.
Transformation
This analysis covers sixty-one data points across the selected time horizon. Synchrony Financial Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Projected Return Density Against Market

Considering the 90-day investment horizon Synchrony Financial has a beta of 1.6303 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Synchrony Financial will likely underperform.
Synchrony Financial is exposed to both systematic and unsystematic risk. Systematic risk reflects broader stock market movements, while company or sector-specific developments represent nonmarket drivers. Diversification may reduce specific risk, but market exposure remains. Beta and standard deviation help quantify volatility. Latest disclosures for Synchrony Financial show a Mean Deviation of 1.56, an Option Implied Volatility of 0.50, and a Standard Deviation of 2.23.
Synchrony Financial has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial.
   Predicted Return Density   
       Returns  
Synchrony Financial's volatility is measured either by using standard deviation or beta. Standard deviation reflects how much Synchrony Financial's price typically deviates from the mean over a given period.

What Drives Synchrony Financial's Price Volatility?

Several factors can influence Synchrony Financial's market volatility:

Industry Dynamics

Sector-level events can directly affect Synchrony Financial's price stability. Regulatory changes, supply disruptions, or shifts in demand within Synchrony Financial's industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like Synchrony Financial.

Political and Economic Environment

Macroeconomic conditions and policy decisions shape the backdrop for Synchrony Financial's price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward Synchrony Financial. During periods of economic expansion, Synchrony Financial's price tends to benefit from broader market optimism, while downturns can amplify selling pressure.

Synchrony Financial's Company-Specific Factors

Volatility can also stem from events unique to Synchrony Financial. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in Synchrony Financial's stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on Synchrony Financial's share price.

Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Synchrony Financial is -591.74. The daily returns are distributed with a variance of 5.21 and standard deviation of 2.28. The mean deviation of Synchrony Financial is currently at 1.61. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.8
α
Alpha over Dow Jones
-0.1644
β
Beta against Dow Jones1.63
σ
Overall volatility
2.28
Ir
Information ratio -0.1014

Stock Return Volatility

Synchrony Financial historical daily return volatility represents how much of Synchrony Financial stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company reported 2.2824% volatility on return distribution over a 90-day investment horizon. By contrast, Dow Jones Industrial has volatility of 0.8181% on return distribution over a 90-day investment horizon.
 Performance 
       Timeline  

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

SHGKB
FITBMTB
SHGIX
FITBTFC
KBIX
BBDOSHG
  

High negative correlations

MSKB
SHGMS
MSIX
BBDOMS
WRBMS

Risk-Adjusted Indicators

There is a big difference between Synchrony Stock performing well and Synchrony Financial Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Synchrony Financial's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Risk Metrics, Assumptions & Methodology

Volatility for Synchrony Financial measures return dispersion and uncertainty over time. Higher dispersion implies wider price swings across observed periods. Synchrony Financial has a market cap of 23.84 B, P/E of 5.83, ROE of 21.3%.

Unless otherwise specified, data for Synchrony Financial is compiled from periodic company reporting and market reference feeds and standardized for comparability. Updates may occur throughout the day. Volatility and downside metrics are estimated from historical return dispersion.

This content is curated and reviewed by:

Rifka Kats - Member of Macroaxis Editorial Board
Last reviewed on March 1st, 2026

Synchrony Financial Investment Opportunity

Recent data suggests that Synchrony Financial is meaningfully more volatile than Dow Jones Industrial, by roughly a 2.78x factor. The higher-risk profile should usually be reviewed beside Sharpe Ratio, downside risk, and catalyst strength before the position is sized up.You can use Synchrony Financial to enhance the returns of your portfolios. This directional read frames the latest price swing through a simple momentum and follow-through lens. It works best as a directional cue rather than as a standalone forecast. a large bullish trend. Check odds of Synchrony Financial to be traded at $72.81 in 90 days.
Weak diversification
For the present investment horizon, the measured correlation between SYF and DJI stands at 0.38, or Weak diversification. The cleaner interpretation is to review correlation beside volatility, expected return, and the role each holding plays in the portfolio.

Synchrony Financial Additional Risk Indicators

Looking at additional risk metrics for Synchrony Financial frames how the position may behave under different market and portfolio conditions. The practical goal is to identify how much risk is being accepted and whether that risk still fits the thesis.

Synchrony Financial Suggested Diversification Pairs

Using Synchrony Financial in a pair-trading setup can improve risk control because gains and losses are judged against a second position instead of against the market alone. The key question is whether the second leg adds real hedge value instead of just creating a more complex version of the same risk.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Synchrony Financial as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Synchrony Financial's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Synchrony Financial's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Synchrony Financial.

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