Correlation Between SQ Old and Synchronoss Technologies

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

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

Diversification Opportunities for SQ Old and Synchronoss Technologies

0.0

Correlation Coefficient

SQ Old  Synchronoss Technologies

Pay attention - limited upside

The 3 months correlation between SQ Old and Synchronoss is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SQ Old and Synchronoss Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchronoss Technologies and SQ Old 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 SQ Old 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 SQ Old i.e., SQ Old and Synchronoss Technologies go up and down completely randomly.

Pair Corralation between SQ Old and Synchronoss Technologies

If you would invest  927.00  in Synchronoss Technologies on December 29, 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	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SQ Old  vs.  Synchronoss Technologies

SQ Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days SQ Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, SQ Old is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail 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 SQ Old and Synchronoss Technologies

The main advantage of trading using opposite SQ Old and Synchronoss Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQ Old 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 SQ Old 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.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.