Correlation Between AudioCodes and Altigen Communications
Can any of the company-specific risk be diversified away by investing in both AudioCodes and Altigen Communications 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 Altigen Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AudioCodes and Altigen Communications, you can compare the effects of market volatilities on AudioCodes and Altigen Communications 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 Altigen Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of AudioCodes and Altigen Communications.
Diversification Opportunities for AudioCodes and Altigen Communications
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between AudioCodes and Altigen is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding AudioCodes and Altigen Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altigen Communications 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 Altigen Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altigen Communications has no effect on the direction of AudioCodes i.e., AudioCodes and Altigen Communications go up and down completely randomly.
Pair Corralation between AudioCodes and Altigen Communications
Given the investment horizon of 90 days AudioCodes is expected to generate 0.43 times more return on investment than Altigen Communications. However, AudioCodes is 2.32 times less risky than Altigen Communications. It trades about -0.03 of its potential returns per unit of risk. Altigen Communications is currently generating about -0.09 per unit of risk. If you would invest 1,763 in AudioCodes on August 31, 2024 and sell it today you would lose (853.00) from holding AudioCodes or give up 48.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.48% |
| Values | Daily Returns |
AudioCodes vs. Altigen Communications
Performance |
| Timeline |
| AudioCodes |
| Altigen Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AudioCodes and Altigen Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AudioCodes and Altigen Communications
The main advantage of trading using opposite AudioCodes and Altigen Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AudioCodes position performs unexpectedly, Altigen Communications 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 Altigen Communications will offset losses from the drop in Altigen Communications' long position.| AudioCodes vs. Aviat Networks | AudioCodes vs. Silicom | AudioCodes vs. Akoustis Technologies | AudioCodes vs. Gilat Satellite Networks |
| Altigen Communications vs. Aware Inc | Altigen Communications vs. Integrated Ventures | Altigen Communications vs. AudioCodes |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |