Correlation Between WESANA HEALTH and Synchrony Financial

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

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

Diversification Opportunities for WESANA HEALTH and Synchrony Financial

0.0

Correlation Coefficient

WESANA HEALTH  Synchrony Financial

Pay attention - limited upside

The 3 months correlation between WESANA and Synchrony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WESANA HEALTH HOLD and Synchrony Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchrony Financial and WESANA HEALTH 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 WESANA HEALTH HOLD 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 WESANA HEALTH i.e., WESANA HEALTH and Synchrony Financial go up and down completely randomly.

Pair Corralation between WESANA HEALTH and Synchrony Financial

If you would invest  4,187  in Synchrony Financial on April 22, 2025 and sell it today you would earn a total of  1,814  from holding Synchrony Financial or generate 43.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

WESANA HEALTH HOLD  vs.  Synchrony Financial

WESANA HEALTH HOLD

Risk-Adjusted Performance

Very Weak

Over the last 90 days WESANA HEALTH HOLD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, WESANA HEALTH is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Synchrony Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Synchrony Financial are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Synchrony Financial reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WESANA HEALTH and Synchrony Financial

The main advantage of trading using opposite WESANA HEALTH and Synchrony Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESANA HEALTH 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.

The idea behind WESANA HEALTH HOLD and Synchrony Financial 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.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.