Correlation Between Synopsys and A10 Networks

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Synopsys and A10 Networks 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 Synopsys and A10 Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synopsys and A10 Networks, you can compare the effects of market volatilities on Synopsys and A10 Networks 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 Synopsys with a short position of A10 Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synopsys and A10 Networks.

Diversification Opportunities for Synopsys and A10 Networks

-0.18
  Correlation Coefficient

Good diversification

The 3 months correlation between Synopsys and A10 Networks is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Synopsys and A10 Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A10 Networks and Synopsys 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 Synopsys are associated (or correlated) with A10 Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A10 Networks has no effect on the direction of Synopsys i.e., Synopsys and A10 Networks go up and down completely randomly.

Pair Corralation between Synopsys and A10 Networks

Given the investment horizon of 90 days Synopsys is expected to generate 2.34 times less return on investment than A10 Networks. But when comparing it to its historical volatility, Synopsys is 1.46 times less risky than A10 Networks. It trades about 0.04 of its potential returns per unit of risk. A10 Networks is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  812.00  in A10 Networks on August 30, 2022 and sell it today you would earn a total of  1,011  from holding A10 Networks or generate 124.51% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Synopsys  vs.  A10 Networks

 Performance (%) 
       Timeline  
Synopsys 
Synopsys Performance
0 of 100
Over the last 90 days Synopsys has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Synopsys is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Synopsys Price Channel

A10 Networks 
A10 Networks Performance
14 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in A10 Networks are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain technical and fundamental indicators, A10 Networks disclosed solid returns over the last few months and may actually be approaching a breakup point.

A10 Networks Price Channel

Synopsys and A10 Networks Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Synopsys and A10 Networks

The main advantage of trading using opposite Synopsys and A10 Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synopsys position performs unexpectedly, A10 Networks 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 A10 Networks will offset losses from the drop in A10 Networks' long position.
Synopsys vs. Autodesk
Synopsys vs. Caci International
Synopsys vs. Cadence Design Sys
Synopsys vs. Fiserv Inc
The idea behind Synopsys and A10 Networks 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.
A10 Networks vs. Microsoft Corp
A10 Networks vs. Oracle Corp
A10 Networks vs. Adobe Systems
A10 Networks vs. Vmware Inc
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go