Correlation Between Synchronoss Technologies and Sachem Capital

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

By analyzing existing cross correlation between Synchronoss Technologies 8375 and Sachem Capital Corp, you can compare the effects of market volatilities on Synchronoss Technologies and Sachem Capital 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 Sachem Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synchronoss Technologies and Sachem Capital.

Diversification Opportunities for Synchronoss Technologies and Sachem Capital

0.5

Correlation Coefficient

Synchronoss Technologies  Sachem Capital

Very weak diversification

The 3 months correlation between Synchronoss and Sachem is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Synchronoss Technologies 8375 and Sachem Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sachem Capital 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 8375 are associated (or correlated) with Sachem Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sachem Capital Corp has no effect on the direction of Synchronoss Technologies i.e., Synchronoss Technologies and Sachem Capital go up and down completely randomly.

Pair Corralation between Synchronoss Technologies and Sachem Capital

Assuming the 90 days horizon Synchronoss Technologies is expected to generate 1.32 times less return on investment than Sachem Capital. But when comparing it to its historical volatility, Synchronoss Technologies 8375 is 1.22 times less risky than Sachem Capital. It trades about 0.08 of its potential returns per unit of risk. Sachem Capital Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2,397  in Sachem Capital Corp on December 24, 2024 and sell it today you would earn a total of  73.00  from holding Sachem Capital Corp or generate 3.05% return on investment over 90 days.

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

Synchronoss Technologies 8375  vs.  Sachem Capital Corp

Synchronoss Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Synchronoss Technologies 8375 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Synchronoss Technologies is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Sachem Capital Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sachem Capital Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Sachem Capital is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Synchronoss Technologies and Sachem Capital

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

The idea behind Synchronoss Technologies 8375 and Sachem Capital 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.