Correlation Between TrustBIX and Adcore

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

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

Diversification Opportunities for TrustBIX and Adcore

-0.76

Correlation Coefficient

TrustBIX  Adcore

Pay attention - limited upside

The 3 months correlation between TrustBIX and Adcore is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding TrustBIX and Adcore Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adcore Inc and TrustBIX 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 TrustBIX 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 TrustBIX i.e., TrustBIX and Adcore go up and down completely randomly.

Pair Corralation between TrustBIX and Adcore

Assuming the 90 days horizon TrustBIX is expected to under-perform the Adcore. In addition to that, TrustBIX is 1.12 times more volatile than Adcore Inc. It trades about -0.13 of its total potential returns per unit of risk. Adcore Inc is currently generating about 0.12 per unit of volatility. If you would invest  14.00  in Adcore Inc on October 24, 2024 and sell it today you would earn a total of  8.00  from holding Adcore Inc or generate 57.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

TrustBIX  vs.  Adcore Inc

TrustBIX

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TrustBIX has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Adcore Inc

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Adcore Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Adcore reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TrustBIX and Adcore

The main advantage of trading using opposite TrustBIX and Adcore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrustBIX 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 TrustBIX 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.