Correlation Between Synchronoss Technologies and Cheetah Mobile

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

Diversification Opportunities for Synchronoss Technologies and Cheetah Mobile

-0.22
  Correlation Coefficient

Very good diversification

The 3 months correlation between Synchronoss and Cheetah is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Synchronoss Technologies and Cheetah Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheetah Mobile and Synchronoss 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 Synchronoss Technologies are associated (or correlated) with Cheetah Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheetah Mobile has no effect on the direction of Synchronoss Technologies i.e., Synchronoss Technologies and Cheetah Mobile go up and down completely randomly.

Pair Corralation between Synchronoss Technologies and Cheetah Mobile

Given the investment horizon of 90 days Synchronoss Technologies is expected to under-perform the Cheetah Mobile. In addition to that, Synchronoss Technologies is 1.16 times more volatile than Cheetah Mobile. It trades about -0.1 of its total potential returns per unit of risk. Cheetah Mobile is currently generating about 0.19 per unit of volatility. If you would invest  389.00  in Cheetah Mobile on May 2, 2025 and sell it today you would earn a total of  186.00  from holding Cheetah Mobile or generate 47.81% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Synchronoss Technologies  vs.  Cheetah Mobile

 Performance 
       Timeline  
Synchronoss Technologies 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Synchronoss Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Cheetah Mobile 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cheetah Mobile are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, Cheetah Mobile displayed solid returns over the last few months and may actually be approaching a breakup point.

Synchronoss Technologies and Cheetah Mobile Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Synchronoss Technologies and Cheetah Mobile

The main advantage of trading using opposite Synchronoss Technologies and Cheetah Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synchronoss Technologies position performs unexpectedly, Cheetah Mobile 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 Cheetah Mobile will offset losses from the drop in Cheetah Mobile's long position.
The idea behind Synchronoss Technologies and Cheetah Mobile 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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