Correlation Between Agent Information and Adcore

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

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

Diversification Opportunities for Agent Information and Adcore

0.22

Correlation Coefficient

Agent Information  Adcore

Modest diversification

The 3 months correlation between Agent and Adcore is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Agent Information Software and Adcore Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adcore Inc and Agent Information 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 Agent Information Software 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 Agent Information i.e., Agent Information and Adcore go up and down completely randomly.

Pair Corralation between Agent Information and Adcore

Given the investment horizon of 90 days Agent Information Software is expected to generate 0.98 times more return on investment than Adcore. However, Agent Information Software is 1.02 times less risky than Adcore. It trades about 0.06 of its potential returns per unit of risk. Adcore Inc is currently generating about -0.06 per unit of risk. If you would invest  130.00  in Agent Information Software on September 1, 2024 and sell it today you would earn a total of  5.00  from holding Agent Information Software or generate 3.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Agent Information Software  vs.  Adcore Inc

Agent Information

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Agent Information Software are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Agent Information unveiled 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 Agent Information and Adcore

The main advantage of trading using opposite Agent Information and Adcore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agent Information 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 Agent Information Software 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.