Correlation Between ARHT Media and Adcore

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

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

Diversification Opportunities for ARHT Media and Adcore

0.4

Correlation Coefficient

ARHT Media  Adcore

Very weak diversification

The 3 months correlation between ARHT and Adcore is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding ARHT Media and Adcore Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adcore Inc and ARHT Media 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 ARHT Media 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 ARHT Media i.e., ARHT Media and Adcore go up and down completely randomly.

Pair Corralation between ARHT Media and Adcore

If you would invest  1.40  in ARHT Media on September 1, 2024 and sell it today you would earn a total of  0.00  from holding ARHT Media or generate 0.0% return on investment over 90 days.

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

ARHT Media  vs.  Adcore Inc

ARHT Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ARHT Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 ARHT Media and Adcore

The main advantage of trading using opposite ARHT Media and Adcore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARHT Media 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 ARHT Media 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.