Correlation Between Synnex and Convergys

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Can any of the company-specific risk be diversified away by investing in both Synnex and Convergys 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 and Convergys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synnex and Convergys, you can compare the effects of market volatilities on Synnex and Convergys 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 with a short position of Convergys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synnex and Convergys.

Diversification Opportunities for Synnex and Convergys

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Synnex and Convergys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Synnex and Convergys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Convergys and Synnex 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 are associated (or correlated) with Convergys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Convergys has no effect on the direction of Synnex i.e., Synnex and Convergys go up and down completely randomly.

Pair Corralation between Synnex and Convergys

If you would invest  10,203  in Synnex on December 29, 2023 and sell it today you would earn a total of  1,102  from holding Synnex or generate 10.8% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Synnex  vs.  Convergys

 Performance 
       Timeline  
Synnex 

Risk-Adjusted Performance

5 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Synnex are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Synnex is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Convergys 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Convergys has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Convergys is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Synnex and Convergys Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Synnex and Convergys

The main advantage of trading using opposite Synnex and Convergys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synnex position performs unexpectedly, Convergys 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 Convergys will offset losses from the drop in Convergys' long position.
The idea behind Synnex and Convergys 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.
Check out your portfolio center.
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 Correlations module to find global opportunities by holding instruments from different markets.

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