Discover Financial Correlations

DFS
 Stock
  

USD 105.71  2.84  2.62%   

The correlation of Discover Financial is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Discover Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Discover Financial Services moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Continue to Investing Opportunities.
  
The ability to find closely correlated positions to Discover Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Discover Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Discover Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Discover Financial Services to buy it.

Moving together with Discover Financial

+0.88BACBank Of AmericaPairCorr
+0.84BKBank of New YorkPairCorr
+0.84CCitigroup Fiscal Year End 13th of January 2023 PairCorr
+0.87CFGCitizens FinancialPairCorr
+0.81CMAComericaPairCorr
+0.9COFCapital One FinancialPairCorr
+0.88FITBFifth Third BancorpPairCorr
+0.66FRCFIRST REPUBLIC BANK Fiscal Year End 13th of January 2023 PairCorr
+0.63GSGoldman Sachs GroupPairCorr
+0.71HBANHuntington Bcshs Potential GrowthPairCorr
+0.82JPMJP Morgan Chase Fiscal Year End 13th of January 2023 PairCorr
+0.89KEYKeycorpPairCorr
+0.79MSMorgan StanleyPairCorr
+0.8NYCBNew York CommunityPairCorr
+0.72RFRegions Financial CorpPairCorr
+0.87USBUS BancorpPairCorr

Related Correlations

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Correlation Matchups

The Correlation Coefficient is a useful tool to identify correlated or non-correlated securities, which is essential in developing a diversified portfolio. It tells us the relationship between two positions you have in your portfolio or considering acquiring. Over a given time period, the two securities movetogether 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   
BKBAC
CFGBAC
FITBCFG
FITBBAC
CBK
CFGBK
  

Discover Financial Competition Risk-Adjusted Indicators

Nowadays, there is a big difference between Discover Stock performing well and Discover Financial company doing well compared to the competition. There are way too many exceptions to the normal that investors can tell for sure what's good or bad unless they analyze Discover Financial's multiple risk-adjusted performance indicators. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Mean
Deviation
Jensen
Alpha
Sortino
Ratio
Treynor
Ratio
Semi
Deviation
Information
Ratio
Expected
Shortfall
Potential
Upside
Value
At Risk
Maximum
Drawdown
BAC 1.52 (0.05)  0.00 (0.06)  0.00 (0.0254)  0.00  3.40 (3.15)  10.65 
BK 1.49 (0.06)  0.00 (0.07)  0.00 (0.0326)  0.00  3.13 (3.09)  11.96 
C 1.51 (0.08)  0.00 (0.09)  0.00 (0.0433)  0.00  3.11 (2.85)  17.61 
CFG 1.71  0.00  0.00 (0.02)  0.00 (0.0029)  0.00  4.03 (3.68)  12.89 
CMA 1.79 (0.02)  0.00 (0.04)  0.00 (0.0128)  0.00  4.09 (3.61)  15.94 
FITB 1.71 (0.02)  0.00 (0.04)  0.00 (0.0115)  0.00  4.17 (3.46)  12.97 
FRC 1.84 (0.16)  0.00 (0.14)  0.00 (0.07)  0.00  3.24 (4.10)  23.37 
GS 1.43  0.03  0.01  0.00  1.78  0.0127 (1.52)  3.14 (2.91)  10.31 

Be your own money manager

Our tools can tell you how much better you can do entering a position in Discover Financial without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Aroon Oscillator Now

   

Aroon Oscillator

Analyze current equity momentum using Aroon Oscillator and other momentum ratios
All  Next Launch Module

Discover Financial Corporate Directors

Discover Financial corporate directors refer to members of a Discover Financial board of directors. The board of directors generally takes responsibility for the Discover Financial's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Discover Financial's board members must vote for the resolution. The Discover Financial board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.
Gregory Case - Independent DirectorProfile
Mary Bush - Independent DirectorProfile
Richard Lenny - Independent DirectorProfile
Jennifer Wong - Independent DirectorProfile

Invested in Discover Financial Services?

The danger of trading Discover Financial Services is mainly related to its market volatility and company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Discover Financial is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Discover Financial. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Discover Financial is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Continue to Investing Opportunities. Note that the Discover Financial information on this page should be used as a complementary analysis to other Discover Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Complementary Tools for Discover Stock analysis

When running Discover Financial price analysis, check to measure Discover Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Discover Financial is operating at the current time. Most of Discover Financial's value examination focuses on studying past and present price action to predict the probability of Discover Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Discover Financial's price. Additionally, you may evaluate how the addition of Discover Financial to your portfolios can decrease your overall portfolio volatility.
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Is Discover Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Discover Financial. If investors know Discover will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Discover Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
29.2 B
Quarterly Revenue Growth YOY
0.044
Return On Assets
0.0384
Return On Equity
0.32
The market value of Discover Financial is measured differently than its book value, which is the value of Discover that is recorded on the company's balance sheet. Investors also form their own opinion of Discover Financial's value that differs from its market value or its book value, called intrinsic value, which is Discover Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Discover Financial's market value can be influenced by many factors that don't directly affect Discover Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Discover Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Discover Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Discover Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.