Correlation Between Synnex Public and SNC Former

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

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

Diversification Opportunities for Synnex Public and SNC Former

-0.26

Correlation Coefficient

Synnex Public  SNC Former

Very good diversification

The 3 months correlation between Synnex and SNC is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Synnex Public and SNC Former Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNC Former Public and Synnex Public 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 Synnex Public are associated (or correlated) with SNC Former. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNC Former Public has no effect on the direction of Synnex Public i.e., Synnex Public and SNC Former go up and down completely randomly.

Pair Corralation between Synnex Public and SNC Former

Assuming the 90 days trading horizon Synnex Public is expected to under-perform the SNC Former. In addition to that, Synnex Public is 1.39 times more volatile than SNC Former Public. It trades about -0.18 of its total potential returns per unit of risk. SNC Former Public is currently generating about 0.07 per unit of volatility. If you would invest  570.00  in SNC Former Public on December 29, 2024 and sell it today you would earn a total of  50.00  from holding SNC Former Public or generate 8.77% return on investment over 90 days.

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

Synnex Public  vs.  SNC Former Public

Synnex Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Synnex Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain somewhat 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.

SNC Former Public

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SNC Former Public are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental indicators, SNC Former may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Synnex Public and SNC Former

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

The idea behind Synnex Public and SNC Former Public 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.