Correlation Between WESCO International and Synnex
Can any of the company-specific risk be diversified away by investing in both WESCO International 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 WESCO International and Synnex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESCO International and Synnex, you can compare the effects of market volatilities on WESCO International 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 WESCO International with a short position of Synnex. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESCO International and Synnex.
Diversification Opportunities for WESCO International and Synnex
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between WESCO and Synnex is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding WESCO International and Synnex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synnex and WESCO International 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 WESCO International 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 WESCO International i.e., WESCO International and Synnex go up and down completely randomly.
Pair Corralation between WESCO International and Synnex
Assuming the 90 days trading horizon WESCO International is expected to generate 0.07 times more return on investment than Synnex. However, WESCO International is 14.05 times less risky than Synnex. It trades about 0.2 of its potential returns per unit of risk. Synnex is currently generating about -0.01 per unit of risk. If you would invest 2,596 in WESCO International on August 27, 2024 and sell it today you would earn a total of 15.00 from holding WESCO International or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WESCO International vs. Synnex
Performance |
| Timeline |
| WESCO International |
| Synnex |
WESCO International and Synnex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESCO International and Synnex
The main advantage of trading using opposite WESCO International and Synnex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESCO International 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.| WESCO International vs. SiriusPoint | WESCO International vs. Argo Group International | WESCO International vs. Global Ship Lease | WESCO International vs. Compass Diversified |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |