Correlation Between Wishpond Technologies and Adcore

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

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

Diversification Opportunities for Wishpond Technologies and Adcore

0.06

Correlation Coefficient

Wishpond Technologies  Adcore

Significant diversification

The 3 months correlation between Wishpond and Adcore is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Wishpond Technologies and Adcore Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adcore Inc and Wishpond Technologies 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 Wishpond Technologies 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 Wishpond Technologies i.e., Wishpond Technologies and Adcore go up and down completely randomly.

Pair Corralation between Wishpond Technologies and Adcore

Assuming the 90 days horizon Wishpond Technologies is expected to under-perform the Adcore. But the otc stock apears to be less risky and, when comparing its historical volatility, Wishpond Technologies is 3.66 times less risky than Adcore. The otc stock trades about -0.04 of its potential returns per unit of risk. The Adcore Inc is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Adcore Inc on October 22, 2024 and sell it today you would earn a total of  11.00  from holding Adcore Inc or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Wishpond Technologies  vs.  Adcore Inc

Wishpond Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wishpond Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Adcore Inc

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Adcore Inc are ranked lower than 10 (%) 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 Wishpond Technologies and Adcore

The main advantage of trading using opposite Wishpond Technologies and Adcore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wishpond Technologies 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 Wishpond Technologies 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.