Correlation Between MongoDB and Synchronoss Technologies

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

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

Diversification Opportunities for MongoDB and Synchronoss Technologies

-0.31

Correlation Coefficient

MongoDB  Synchronoss Technologies

Very good diversification

The 3 months correlation between MongoDB and Synchronoss is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding MongoDB and Synchronoss Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchronoss Technologies and MongoDB 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 MongoDB are associated (or correlated) with Synchronoss Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synchronoss Technologies has no effect on the direction of MongoDB i.e., MongoDB and Synchronoss Technologies go up and down completely randomly.

Pair Corralation between MongoDB and Synchronoss Technologies

Considering the 90-day investment horizon MongoDB is expected to under-perform the Synchronoss Technologies. But the stock apears to be less risky and, when comparing its historical volatility, MongoDB is 1.48 times less risky than Synchronoss Technologies. The stock trades about -0.07 of its potential returns per unit of risk. The Synchronoss Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  927.00  in Synchronoss Technologies on December 30, 2024 and sell it today you would earn a total of  237.00  from holding Synchronoss Technologies or generate 25.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MongoDB  vs.  Synchronoss Technologies

MongoDB

Risk-Adjusted Performance

Very Weak

Over the last 90 days MongoDB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Synchronoss Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Synchronoss Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental indicators, Synchronoss Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MongoDB and Synchronoss Technologies

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

The idea behind MongoDB and Synchronoss Technologies 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .