Correlation Between Aurcana Corp and International Tower

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

By analyzing existing cross correlation between Aurcana Corp and International Tower Hill, you can compare the effects of market volatilities on Aurcana Corp and International Tower 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 Aurcana Corp with a short position of International Tower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurcana Corp and International Tower.

Diversification Opportunities for Aurcana Corp and International Tower

0.0

Correlation Coefficient

Aurcana Corp  International Tower

Pay attention - limited upside

The 3 months correlation between Aurcana and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aurcana Corp and International Tower Hill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Tower Hill and Aurcana Corp 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 Aurcana Corp are associated (or correlated) with International Tower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Tower Hill has no effect on the direction of Aurcana Corp i.e., Aurcana Corp and International Tower go up and down completely randomly.

Pair Corralation between Aurcana Corp and International Tower

If you would invest  53.00  in International Tower Hill on September 13, 2024 and sell it today you would earn a total of  4.00  from holding International Tower Hill or generate 7.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Aurcana Corp  vs.  International Tower Hill

Aurcana Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

International Tower Hill

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in International Tower Hill are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical indicators, International Tower displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aurcana Corp and International Tower

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

The idea behind Aurcana Corp and International Tower Hill 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.