Correlation Between Synchronoss Technologies and Searchlight Solutions

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

By analyzing existing cross correlation between Synchronoss Technologies and Searchlight Solutions, you can compare the effects of market volatilities on Synchronoss Technologies and Searchlight Solutions 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 Searchlight Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synchronoss Technologies and Searchlight Solutions.

Diversification Opportunities for Synchronoss Technologies and Searchlight Solutions

0.0

Correlation Coefficient

Synchronoss Technologies  Searchlight Solutions

Pay attention - limited upside

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

Pair Corralation between Synchronoss Technologies and Searchlight Solutions

Given the investment horizon of 90 days Synchronoss Technologies is expected to under-perform the Searchlight Solutions. But the stock apears to be less risky and, when comparing its historical volatility, Synchronoss Technologies is 28.96 times less risky than Searchlight Solutions. The stock trades about -0.09 of its potential returns per unit of risk. The Searchlight Solutions is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Searchlight Solutions on April 25, 2025 and sell it today you would earn a total of  0.00  from holding Searchlight Solutions or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Synchronoss Technologies  vs.  Searchlight Solutions

Synchronoss Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Synchronoss Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating 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.

Searchlight Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Searchlight Solutions are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating essential indicators, Searchlight Solutions displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Synchronoss Technologies and Searchlight Solutions

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

The idea behind Synchronoss Technologies and Searchlight Solutions 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.