Correlation Between Intouch Insight and Adcore

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

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

Diversification Opportunities for Intouch Insight and Adcore

-0.08

Correlation Coefficient

Intouch Insight  Adcore

Good diversification

The 3 months correlation between Intouch and Adcore is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Intouch Insight and Adcore Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adcore Inc and Intouch Insight 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 Intouch Insight 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 Intouch Insight i.e., Intouch Insight and Adcore go up and down completely randomly.

Pair Corralation between Intouch Insight and Adcore

Assuming the 90 days horizon Intouch Insight is expected to generate 1.44 times more return on investment than Adcore. However, Intouch Insight is 1.44 times more volatile than Adcore Inc. It trades about 0.11 of its potential returns per unit of risk. Adcore Inc is currently generating about -0.02 per unit of risk. If you would invest  26.00  in Intouch Insight on September 12, 2024 and sell it today you would earn a total of  12.00  from holding Intouch Insight or generate 46.15% return on investment over 90 days.

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

Intouch Insight  vs.  Adcore Inc

Intouch Insight

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intouch Insight are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Intouch Insight reported 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 latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Intouch Insight and Adcore

The main advantage of trading using opposite Intouch Insight and Adcore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intouch Insight 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 Intouch Insight 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.