Correlation Between AudioCodes and Domo

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

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

Diversification Opportunities for AudioCodes and Domo

0.66

Correlation Coefficient

AudioCodes  Domo

Poor diversification

The 3 months correlation between AudioCodes and Domo is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding AudioCodes and Domo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Domo 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 Domo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Domo Inc has no effect on the direction of AudioCodes i.e., AudioCodes and Domo go up and down completely randomly.

Pair Corralation between AudioCodes and Domo

Given the investment horizon of 90 days AudioCodes is expected to generate 8.1 times less return on investment than Domo. But when comparing it to its historical volatility, AudioCodes is 1.37 times less risky than Domo. It trades about 0.05 of its potential returns per unit of risk. Domo Inc is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  753.00  in Domo Inc on May 1, 2025 and sell it today you would earn a total of  888.00  from holding Domo Inc or generate 117.93% return on investment over 90 days.

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

AudioCodes  vs.  Domo Inc

AudioCodes

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AudioCodes are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, AudioCodes may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Domo Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Domo Inc are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent primary indicators, Domo displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AudioCodes and Domo

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

The idea behind AudioCodes and Domo 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.