Correlation Between WiSA Technologies and Synaptics Incorporated

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

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

Diversification Opportunities for WiSA Technologies and Synaptics Incorporated

-0.39

Correlation Coefficient

WiSA Technologies  Synaptics Incorporated

Very good diversification

The 3 months correlation between WiSA and Synaptics is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding WiSA Technologies and Synaptics Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synaptics Incorporated and WiSA 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 WiSA Technologies are associated (or correlated) with Synaptics Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synaptics Incorporated has no effect on the direction of WiSA Technologies i.e., WiSA Technologies and Synaptics Incorporated go up and down completely randomly.

Pair Corralation between WiSA Technologies and Synaptics Incorporated

Given the investment horizon of 90 days WiSA Technologies is expected to under-perform the Synaptics Incorporated. In addition to that, WiSA Technologies is 5.57 times more volatile than Synaptics Incorporated. It trades about -0.04 of its total potential returns per unit of risk. Synaptics Incorporated is currently generating about 0.0 per unit of volatility. If you would invest  9,516  in Synaptics Incorporated on September 20, 2024 and sell it today you would lose (2,000) from holding Synaptics Incorporated or give up 21.01% of portfolio value over 90 days.

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

WiSA Technologies  vs.  Synaptics Incorporated

WiSA Technologies

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WiSA Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, WiSA Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Synaptics Incorporated

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Synaptics Incorporated are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Synaptics Incorporated is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with WiSA Technologies and Synaptics Incorporated

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

The idea behind WiSA Technologies and Synaptics Incorporated 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.