Correlation Between Synchronoss Technologies and Apptech Corp

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

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

Diversification Opportunities for Synchronoss Technologies and Apptech Corp

0.5

Correlation Coefficient

Synchronoss Technologies  Apptech Corp

Very weak diversification

The 3 months correlation between Synchronoss and Apptech is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Synchronoss Technologies and Apptech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apptech Corp and Synchronoss Technologies 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 Synchronoss Technologies are associated (or correlated) with Apptech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apptech Corp has no effect on the direction of Synchronoss Technologies i.e., Synchronoss Technologies and Apptech Corp go up and down completely randomly.

Pair Corralation between Synchronoss Technologies and Apptech Corp

Given the investment horizon of 90 days Synchronoss Technologies is expected to generate 0.77 times more return on investment than Apptech Corp. However, Synchronoss Technologies is 1.3 times less risky than Apptech Corp. It trades about -0.12 of its potential returns per unit of risk. Apptech Corp is currently generating about -0.1 per unit of risk. If you would invest  1,471  in Synchronoss Technologies on September 1, 2024 and sell it today you would lose (483.00) from holding Synchronoss Technologies or give up 32.83% of portfolio value over 90 days.

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

Synchronoss Technologies  vs.  Apptech Corp

Synchronoss Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Synchronoss Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Apptech Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apptech Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Synchronoss Technologies and Apptech Corp

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

The idea behind Synchronoss Technologies and Apptech Corp 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.