24.1 -0.08 (-0.33%) Sell

SYF investors take a moment to reassess their portfolio allocation

13 min read

SYNCHRONY FINANCIAL underperformed today. It fell by -0.33% to close at 24.1. During the last week it fell by -3.45% and saw a maximum drawdown of -3.45%.

[Themes containing SYF]

SYF is currently in a bearish trend. The current bearish signal has generated a profit of +18.94% for investors in the last three months.


SYF has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 4 Jan, 2017 to 3 Dec, 2018. Over the last 2 years 11 months and 10 days, SYF underperformed the SP500 index on 49% days. Which indicates that on days SYF underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months SYF was mostly loss making and delivered on average -0.45% per day. It's best return during this period (of +5.8%) was on Friday, 19 Oct, 2018. While it's worst loss in the same period (of -10.22%) was on Friday, 2 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 21 Sep, 2018 and ended on 28 Sep, 2018. This bearish trend lost -7.71% of investor capital.

During the last year SYF had 4 profitable months and 8 loss making months. SYF returned profits in fewer months than SP500 index. SYF was also a more risky investment than SP500 index as it's worst month in the last year, Jul 2018, returned -14.48% compared to -7.28% returned by SP500 index in Oct 2018. SYF had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -27.4%. It is interesting to note that both SYF and SP500 index significantly outperform during months when quarterly/annual results are announced.

Know what you own, and know why you own it.
-- Peter Lynch

SYF is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in SYF's volatility from 21 Sep, 2018 to 24 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that SYF has significant positive skewness in it's return distribution. This indicates that investors can expect SYF to recover from drawdowns quickly. Which makes SYF a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in SYF derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than SYF. Therefore, SP500 must receive a lower allocation than SYF in your portfolio. SYF usually has shorter drawdown period than the SP500 index.

Based on your interest in SYF you may find it interesting to know that KEYS and EHC are both small caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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