Correlation Between 58 and Synnex

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Can any of the company-specific risk be diversified away by investing in both 58 and Synnex 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 58 and Synnex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 58 Inc and Synnex, you can compare the effects of market volatilities on 58 and Synnex 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 58 with a short position of Synnex. Check out your portfolio center. Please also check ongoing floating volatility patterns of 58 and Synnex.

Diversification Opportunities for 58 and Synnex

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between 58 and Synnex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 58 Inc and Synnex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synnex and 58 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 58 Inc are associated (or correlated) with Synnex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synnex has no effect on the direction of 58 i.e., 58 and Synnex go up and down completely randomly.

Pair Corralation between 58 and Synnex

If you would invest  10,280  in Synnex on December 30, 2023 and sell it today you would earn a total of  1,030  from holding Synnex or generate 10.02% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

58 Inc  vs.  Synnex

 Performance 
       Timeline  
58 Inc 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days 58 Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, 58 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Synnex 

Risk-Adjusted Performance

6 of 100

 
Low
 
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Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Synnex are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Synnex may actually be approaching a critical reversion point that can send shares even higher in April 2024.

58 and Synnex Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 58 and Synnex

The main advantage of trading using opposite 58 and Synnex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 58 position performs unexpectedly, Synnex 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 Synnex will offset losses from the drop in Synnex's long position.
The idea behind 58 Inc and Synnex 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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