Correlation Between FalconStor Software and Adcore

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

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

Diversification Opportunities for FalconStor Software and Adcore

0.44

Correlation Coefficient

FalconStor Software  Adcore

Very weak diversification

The 3 months correlation between FalconStor and Adcore is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding FalconStor Software and Adcore Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adcore Inc and FalconStor Software 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 FalconStor Software 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 FalconStor Software i.e., FalconStor Software and Adcore go up and down completely randomly.

Pair Corralation between FalconStor Software and Adcore

Given the investment horizon of 90 days FalconStor Software is expected to generate 1.24 times more return on investment than Adcore. However, FalconStor Software is 1.24 times more volatile than Adcore Inc. It trades about -0.07 of its potential returns per unit of risk. Adcore Inc is currently generating about -0.11 per unit of risk. If you would invest  180.00  in FalconStor Software on September 10, 2025 and sell it today you would lose (61.00) from holding FalconStor Software or give up 33.89% of portfolio value over 90 days.

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

FalconStor Software  vs.  Adcore Inc

FalconStor Software

Risk-Adjusted Performance

Weakest

Over the last 90 days FalconStor Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Adcore Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Adcore Inc 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 January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with FalconStor Software and Adcore

The main advantage of trading using opposite FalconStor Software and Adcore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FalconStor Software 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 FalconStor Software 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.