Correlation Between AudioCodes and BASE

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

By analyzing existing cross correlation between AudioCodes and BASE Inc, you can compare the effects of market volatilities on AudioCodes and BASE 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 BASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AudioCodes and BASE.

Diversification Opportunities for AudioCodes and BASE

-0.53

Correlation Coefficient

AudioCodes  BASE

Excellent diversification

The 3 months correlation between AudioCodes and BASE is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding AudioCodes and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE Inc 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 BASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASE Inc has no effect on the direction of AudioCodes i.e., AudioCodes and BASE go up and down completely randomly.

Pair Corralation between AudioCodes and BASE

Given the investment horizon of 90 days AudioCodes is expected to generate 1.25 times more return on investment than BASE. However, AudioCodes is 1.25 times more volatile than BASE Inc. It trades about 0.07 of its potential returns per unit of risk. BASE Inc is currently generating about -0.09 per unit of risk. If you would invest  886.00  in AudioCodes on May 12, 2025 and sell it today you would earn a total of  99.00  from holding AudioCodes or generate 11.17% 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.  BASE Inc

AudioCodes

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in AudioCodes are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, AudioCodes exhibited solid returns over the last few months and may actually be approaching a breakup point.

BASE Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days BASE 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 September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with AudioCodes and BASE

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

The idea behind AudioCodes and BASE 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .