Correlation Between Arctic Gold and I Tech

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

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

Diversification Opportunities for Arctic Gold and I Tech

0.11

Correlation Coefficient

Arctic Gold  I Tech

Average diversification

The 3 months correlation between Arctic and ITECH is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Arctic Gold Publ and I Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Tech and Arctic Gold 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 Arctic Gold Publ are associated (or correlated) with I Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Tech has no effect on the direction of Arctic Gold i.e., Arctic Gold and I Tech go up and down completely randomly.

Pair Corralation between Arctic Gold and I Tech

Assuming the 90 days trading horizon Arctic Gold Publ is expected to under-perform the I Tech. In addition to that, Arctic Gold is 3.25 times more volatile than I Tech. It trades about -0.04 of its total potential returns per unit of risk. I Tech is currently generating about 0.2 per unit of volatility. If you would invest  8,929  in I Tech on May 1, 2025 and sell it today you would earn a total of  2,521  from holding I Tech or generate 28.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Arctic Gold Publ  vs.  I Tech

Arctic Gold Publ

Risk-Adjusted Performance

Very Weak

Over the last 90 days Arctic Gold Publ has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

I Tech

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in I Tech are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, I Tech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Arctic Gold and I Tech

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

The idea behind Arctic Gold Publ and I Tech 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.