Correlation Between CurrentC Power and Adcore

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

By analyzing existing cross correlation between CurrentC Power and Adcore Inc, you can compare the effects of market volatilities on CurrentC Power and Adcore 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 CurrentC Power with a short position of Adcore. Check out your portfolio center. Please also check ongoing floating volatility patterns of CurrentC Power and Adcore.

Diversification Opportunities for CurrentC Power and Adcore

-0.08

Correlation Coefficient

CurrentC Power  Adcore

Good diversification

The 3 months correlation between CurrentC and Adcore is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding CurrentC Power and Adcore Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adcore Inc and CurrentC Power 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 CurrentC Power are associated (or correlated) with Adcore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adcore Inc has no effect on the direction of CurrentC Power i.e., CurrentC Power and Adcore go up and down completely randomly.

Pair Corralation between CurrentC Power and Adcore

Given the investment horizon of 90 days CurrentC Power is expected to generate 7.45 times more return on investment than Adcore. However, CurrentC Power is 7.45 times more volatile than Adcore Inc. It trades about 0.12 of its potential returns per unit of risk. Adcore Inc is currently generating about 0.01 per unit of risk. If you would invest  25.00  in CurrentC Power on September 13, 2024 and sell it today you would lose (5.00) from holding CurrentC Power or give up 20.0% of portfolio value over 90 days.

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

CurrentC Power  vs.  Adcore Inc

CurrentC Power

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CurrentC Power are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, CurrentC Power showed solid returns over the last few months and may actually be approaching a breakup point.

Adcore Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Adcore Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Adcore is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CurrentC Power and Adcore

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

The idea behind CurrentC Power and Adcore Inc 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..