Correlation Between AudioCodes and OneSpan

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

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

Diversification Opportunities for AudioCodes and OneSpan

-0.25

Correlation Coefficient

AudioCodes  OneSpan

Very good diversification

The 3 months correlation between AudioCodes and OneSpan is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding AudioCodes and OneSpan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpan 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 OneSpan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSpan has no effect on the direction of AudioCodes i.e., AudioCodes and OneSpan go up and down completely randomly.

Pair Corralation between AudioCodes and OneSpan

Given the investment horizon of 90 days AudioCodes is expected to generate 1.46 times more return on investment than OneSpan. However, AudioCodes is 1.46 times more volatile than OneSpan. It trades about 0.06 of its potential returns per unit of risk. OneSpan is currently generating about -0.13 per unit of risk. If you would invest  890.00  in AudioCodes on May 14, 2025 and sell it today you would earn a total of  95.00  from holding AudioCodes or generate 10.67% return on investment over 90 days.

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

AudioCodes  vs.  OneSpan

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.

OneSpan

Risk-Adjusted Performance

Weakest

Over the last 90 days OneSpan has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with AudioCodes and OneSpan

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

The idea behind AudioCodes and OneSpan 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.