Correlation Between AudioCodes and Calix

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

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

Diversification Opportunities for AudioCodes and Calix

0.32

Correlation Coefficient

AudioCodes  Calix

Weak diversification

The 3 months correlation between AudioCodes and Calix is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding AudioCodes and Calix Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calix 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 Calix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calix Inc has no effect on the direction of AudioCodes i.e., AudioCodes and Calix go up and down completely randomly.

Pair Corralation between AudioCodes and Calix

Given the investment horizon of 90 days AudioCodes is expected to generate 10.43 times less return on investment than Calix. In addition to that, AudioCodes is 2.2 times more volatile than Calix Inc. It trades about 0.01 of its total potential returns per unit of risk. Calix Inc is currently generating about 0.26 per unit of volatility. If you would invest  4,674  in Calix Inc on May 29, 2025 and sell it today you would earn a total of  1,273  from holding Calix Inc or generate 27.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

AudioCodes  vs.  Calix Inc

AudioCodes

Risk-Adjusted Performance

Weak

Over the last 90 days AudioCodes has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, AudioCodes is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Calix Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calix Inc are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Calix showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AudioCodes and Calix

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

The idea behind AudioCodes and Calix 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.