Correlation Between AudioCodes and Clal Insurance
Can any of the company-specific risk be diversified away by investing in both AudioCodes and Clal Insurance 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 AudioCodes and Clal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AudioCodes and Clal Insurance Enterprises, you can compare the effects of market volatilities on AudioCodes and Clal Insurance 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 AudioCodes with a short position of Clal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AudioCodes and Clal Insurance.
Diversification Opportunities for AudioCodes and Clal Insurance
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AudioCodes and Clal is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding AudioCodes and Clal Insurance Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clal Insurance Enter and AudioCodes 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 AudioCodes are associated (or correlated) with Clal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clal Insurance Enter has no effect on the direction of AudioCodes i.e., AudioCodes and Clal Insurance go up and down completely randomly.
Pair Corralation between AudioCodes and Clal Insurance
Assuming the 90 days trading horizon AudioCodes is expected to under-perform the Clal Insurance. In addition to that, AudioCodes is 2.0 times more volatile than Clal Insurance Enterprises. It trades about -0.08 of its total potential returns per unit of risk. Clal Insurance Enterprises is currently generating about 0.25 per unit of volatility. If you would invest 717,000 in Clal Insurance Enterprises on September 1, 2024 and sell it today you would earn a total of 54,200 from holding Clal Insurance Enterprises or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AudioCodes vs. Clal Insurance Enterprises
Performance |
| Timeline |
| AudioCodes |
| Clal Insurance Enter |
AudioCodes and Clal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AudioCodes and Clal Insurance
The main advantage of trading using opposite AudioCodes and Clal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AudioCodes position performs unexpectedly, Clal Insurance 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 Clal Insurance will offset losses from the drop in Clal Insurance's long position.| AudioCodes vs. Nice | AudioCodes vs. Tower Semiconductor | AudioCodes vs. Elbit Systems | AudioCodes vs. Nova |
| Clal Insurance vs. Menif Financial Services | Clal Insurance vs. Accel Solutions Group | Clal Insurance vs. Rani Zim Shopping | Clal Insurance vs. Mivtach Shamir |
Check out your portfolio center.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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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