Correlation Between Syntec Optics and PowerFleet,

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

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

Diversification Opportunities for Syntec Optics and PowerFleet,

0.01

Correlation Coefficient

Syntec Optics  PowerFleet,

Significant diversification

The 3 months correlation between Syntec and PowerFleet, is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Syntec Optics Holdings and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, and Syntec Optics 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 Syntec Optics Holdings are associated (or correlated) with PowerFleet,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerFleet, has no effect on the direction of Syntec Optics i.e., Syntec Optics and PowerFleet, go up and down completely randomly.

Pair Corralation between Syntec Optics and PowerFleet,

Given the investment horizon of 90 days Syntec Optics Holdings is expected to under-perform the PowerFleet,. In addition to that, Syntec Optics is 1.4 times more volatile than PowerFleet,. It trades about -0.13 of its total potential returns per unit of risk. PowerFleet, is currently generating about -0.01 per unit of volatility. If you would invest  680.00  in PowerFleet, on December 27, 2024 and sell it today you would lose (87.00) from holding PowerFleet, or give up 12.79% of portfolio value over 90 days.

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

Syntec Optics Holdings  vs.  PowerFleet,

Syntec Optics Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Syntec Optics Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly 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.

PowerFleet,

Risk-Adjusted Performance

Very Weak

Over the last 90 days PowerFleet, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PowerFleet, is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Syntec Optics and PowerFleet,

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

The idea behind Syntec Optics Holdings and PowerFleet, 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.