Correlation Between Synchrony Financial and Abrdn Property

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

By analyzing existing cross correlation between Synchrony Financial and abrdn Property Income, you can compare the effects of market volatilities on Synchrony Financial and Abrdn Property 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 Synchrony Financial with a short position of Abrdn Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synchrony Financial and Abrdn Property.

Diversification Opportunities for Synchrony Financial and Abrdn Property

-0.49

Correlation Coefficient

Synchrony Financial  Abrdn Property

Very good diversification

The 3 months correlation between Synchrony and Abrdn is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Synchrony Financial and abrdn Property Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Property Income and Synchrony 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 Synchrony Financial are associated (or correlated) with Abrdn Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Property Income has no effect on the direction of Synchrony Financial i.e., Synchrony Financial and Abrdn Property go up and down completely randomly.

Pair Corralation between Synchrony Financial and Abrdn Property

Assuming the 90 days trading horizon Synchrony Financial is expected to generate 0.79 times more return on investment than Abrdn Property. However, Synchrony Financial is 1.26 times less risky than Abrdn Property. It trades about 0.27 of its potential returns per unit of risk. abrdn Property Income is currently generating about -0.05 per unit of risk. If you would invest  5,156  in Synchrony Financial on April 24, 2025 and sell it today you would earn a total of  2,030  from holding Synchrony Financial or generate 39.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.83%
Values	Daily Returns

Synchrony Financial  vs.  abrdn Property Income

Synchrony Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Synchrony Financial are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Synchrony Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

abrdn Property Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days abrdn Property Income has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Synchrony Financial and Abrdn Property

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

The idea behind Synchrony Financial and abrdn Property Income 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.