Correlation Between QuantumCTek and AudioCodes

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

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

Diversification Opportunities for QuantumCTek and AudioCodes

-0.67

Correlation Coefficient

QuantumCTek  AudioCodes

Excellent diversification

The 3 months correlation between QuantumCTek and AudioCodes is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding QuantumCTek Co and AudioCodes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AudioCodes and QuantumCTek 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 QuantumCTek Co are associated (or correlated) with AudioCodes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AudioCodes has no effect on the direction of QuantumCTek i.e., QuantumCTek and AudioCodes go up and down completely randomly.

Pair Corralation between QuantumCTek and AudioCodes

Assuming the 90 days trading horizon QuantumCTek Co is expected to generate 1.4 times more return on investment than AudioCodes. However, QuantumCTek is 1.4 times more volatile than AudioCodes. It trades about 0.15 of its potential returns per unit of risk. AudioCodes is currently generating about 0.0 per unit of risk. If you would invest  27,200  in QuantumCTek Co on September 17, 2025 and sell it today you would earn a total of  23,280  from holding QuantumCTek Co or generate 85.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

QuantumCTek Co  vs.  AudioCodes

QuantumCTek

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in QuantumCTek Co are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, QuantumCTek sustained solid returns over the last few months and may actually be approaching a breakup point.

AudioCodes

Risk-Adjusted Performance

Weakest

Over the last 90 days AudioCodes has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with QuantumCTek and AudioCodes

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

The idea behind QuantumCTek Co and AudioCodes 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.