Correlation Between Synchronoss Technologies and Tego Cyber

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

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

Diversification Opportunities for Synchronoss Technologies and Tego Cyber

-0.03

Correlation Coefficient

Synchronoss Technologies  Tego Cyber

Good diversification

The 3 months correlation between Synchronoss and Tego is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Synchronoss Technologies and Tego Cyber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tego Cyber 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 Tego Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tego Cyber has no effect on the direction of Synchronoss Technologies i.e., Synchronoss Technologies and Tego Cyber go up and down completely randomly.

Pair Corralation between Synchronoss Technologies and Tego Cyber

Given the investment horizon of 90 days Synchronoss Technologies is expected to under-perform the Tego Cyber. But the stock apears to be less risky and, when comparing its historical volatility, Synchronoss Technologies is 2.41 times less risky than Tego Cyber. The stock trades about -0.13 of its potential returns per unit of risk. The Tego Cyber is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3.60  in Tego Cyber on April 25, 2025 and sell it today you would lose (0.09) from holding Tego Cyber or give up 2.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Synchronoss Technologies  vs.  Tego Cyber

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.

Tego Cyber

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tego Cyber are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Tego Cyber sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Synchronoss Technologies and Tego Cyber

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

The idea behind Synchronoss Technologies and Tego Cyber 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.