Correlation Between Adcore and Intouch Insight

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

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

Diversification Opportunities for Adcore and Intouch Insight

0.05

Correlation Coefficient

Adcore  Intouch Insight

Significant diversification

The 3 months correlation between Adcore and Intouch is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Adcore Inc and Intouch Insight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intouch Insight and Adcore 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 Adcore Inc are associated (or correlated) with Intouch Insight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intouch Insight has no effect on the direction of Adcore i.e., Adcore and Intouch Insight go up and down completely randomly.

Pair Corralation between Adcore and Intouch Insight

Assuming the 90 days horizon Adcore Inc is expected to generate 1.36 times more return on investment than Intouch Insight. However, Adcore is 1.36 times more volatile than Intouch Insight. It trades about 0.04 of its potential returns per unit of risk. Intouch Insight is currently generating about -0.13 per unit of risk. If you would invest  17.00  in Adcore Inc on May 19, 2025 and sell it today you would earn a total of  1.00  from holding Adcore Inc or generate 5.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Adcore Inc  vs.  Intouch Insight

Adcore Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Adcore Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Adcore may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Intouch Insight

Risk-Adjusted Performance

Weakest

Over the last 90 days Intouch Insight 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 September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Adcore and Intouch Insight

The main advantage of trading using opposite Adcore and Intouch Insight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adcore position performs unexpectedly, Intouch Insight 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 Intouch Insight will offset losses from the drop in Intouch Insight's long position.

The idea behind Adcore Inc and Intouch Insight 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.