Correlation Between AudioCodes and Hilan
Can any of the company-specific risk be diversified away by investing in both AudioCodes and Hilan 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 Hilan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AudioCodes and Hilan, you can compare the effects of market volatilities on AudioCodes and Hilan 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 Hilan. Check out your portfolio center. Please also check ongoing floating volatility patterns of AudioCodes and Hilan.
Diversification Opportunities for AudioCodes and Hilan
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AudioCodes and Hilan is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding AudioCodes and Hilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilan 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 Hilan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilan has no effect on the direction of AudioCodes i.e., AudioCodes and Hilan go up and down completely randomly.
Pair Corralation between AudioCodes and Hilan
Assuming the 90 days trading horizon AudioCodes is expected to under-perform the Hilan. In addition to that, AudioCodes is 1.64 times more volatile than Hilan. It trades about -0.03 of its total potential returns per unit of risk. Hilan is currently generating about 0.05 per unit of volatility. If you would invest 1,841,754 in Hilan on September 3, 2024 and sell it today you would earn a total of 273,246 from holding Hilan or generate 14.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AudioCodes vs. Hilan
Performance |
| Timeline |
| AudioCodes |
| Hilan |
AudioCodes and Hilan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AudioCodes and Hilan
The main advantage of trading using opposite AudioCodes and Hilan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AudioCodes position performs unexpectedly, Hilan 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 Hilan will offset losses from the drop in Hilan's long position.| AudioCodes vs. Nice | AudioCodes vs. Tower Semiconductor | AudioCodes vs. Elbit Systems | AudioCodes vs. Nova |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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