Correlation Between Synchronoss Technologies and SPS Commerce

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

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

Diversification Opportunities for Synchronoss Technologies and SPS Commerce

-0.02

Correlation Coefficient

Synchronoss Technologies  SPS Commerce

Good diversification

The 3 months correlation between Synchronoss and SPS is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Synchronoss Technologies and SPS Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPS Commerce 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 SPS Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPS Commerce has no effect on the direction of Synchronoss Technologies i.e., Synchronoss Technologies and SPS Commerce go up and down completely randomly.

Pair Corralation between Synchronoss Technologies and SPS Commerce

Given the investment horizon of 90 days Synchronoss Technologies is expected to generate 1.02 times more return on investment than SPS Commerce. However, Synchronoss Technologies is 1.02 times more volatile than SPS Commerce. It trades about 0.01 of its potential returns per unit of risk. SPS Commerce is currently generating about -0.15 per unit of risk. If you would invest  799.00  in Synchronoss Technologies on May 10, 2025 and sell it today you would lose (17.00) from holding Synchronoss Technologies or give up 2.13% of portfolio value over 90 days.

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

Synchronoss Technologies  vs.  SPS Commerce

Synchronoss Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Synchronoss Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Synchronoss Technologies is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

SPS Commerce

Risk-Adjusted Performance

Weakest

Over the last 90 days SPS Commerce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Synchronoss Technologies and SPS Commerce

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

The idea behind Synchronoss Technologies and SPS Commerce 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.