Correlation Between AudioCodes and ScanTech
Can any of the company-specific risk be diversified away by investing in both AudioCodes and ScanTech 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 ScanTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AudioCodes and ScanTech AI Systems, you can compare the effects of market volatilities on AudioCodes and ScanTech 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 ScanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of AudioCodes and ScanTech.
Diversification Opportunities for AudioCodes and ScanTech
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AudioCodes and ScanTech is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding AudioCodes and ScanTech AI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanTech AI Systems 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 ScanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanTech AI Systems has no effect on the direction of AudioCodes i.e., AudioCodes and ScanTech go up and down completely randomly.
Pair Corralation between AudioCodes and ScanTech
Given the investment horizon of 90 days AudioCodes is expected to generate 0.7 times more return on investment than ScanTech. However, AudioCodes is 1.42 times less risky than ScanTech. It trades about 0.06 of its potential returns per unit of risk. ScanTech AI Systems is currently generating about -0.25 per unit of risk. If you would invest 947.00 in AudioCodes on April 27, 2025 and sell it today you would earn a total of 100.00 from holding AudioCodes or generate 10.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AudioCodes vs. ScanTech AI Systems
Performance |
Timeline |
AudioCodes |
ScanTech AI Systems |
AudioCodes and ScanTech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AudioCodes and ScanTech
The main advantage of trading using opposite AudioCodes and ScanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AudioCodes position performs unexpectedly, ScanTech 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 ScanTech will offset losses from the drop in ScanTech's long position.AudioCodes vs. ADTRAN Inc | AudioCodes vs. Allot Communications | AudioCodes vs. Aviat Networks | AudioCodes vs. Camtek |
ScanTech vs. Hasbro Inc | ScanTech vs. United Parks Resorts | ScanTech vs. Planet Fitness | ScanTech vs. Kulicke and Soffa |
Check out your portfolio center.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 Transaction History module to view history of all your transactions and understand their impact on performance.
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