Correlation Between Synchronoss Technologies and Repay Holdings

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

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

Diversification Opportunities for Synchronoss Technologies and Repay Holdings

-0.42

Correlation Coefficient

Synchronoss Technologies  Repay Holdings

Very good diversification

The 3 months correlation between Synchronoss and Repay is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Synchronoss Technologies and Repay Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repay Holdings 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 Repay Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repay Holdings Corp has no effect on the direction of Synchronoss Technologies i.e., Synchronoss Technologies and Repay Holdings go up and down completely randomly.

Pair Corralation between Synchronoss Technologies and Repay Holdings

Given the investment horizon of 90 days Synchronoss Technologies is expected to generate 2.55 times more return on investment than Repay Holdings. However, Synchronoss Technologies is 2.55 times more volatile than Repay Holdings Corp. It trades about 0.08 of its potential returns per unit of risk. Repay Holdings Corp is currently generating about -0.19 per unit of risk. 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Synchronoss Technologies  vs.  Repay Holdings Corp

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.

Repay Holdings Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Repay Holdings 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 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.

Pair Trading with Synchronoss Technologies and Repay Holdings

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

The idea behind Synchronoss Technologies and Repay Holdings 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.