Correlation Between Cognyte Software and AudioCodes

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

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

Diversification Opportunities for Cognyte Software and AudioCodes

0.3

Correlation Coefficient

Cognyte Software  AudioCodes

Weak diversification

The 3 months correlation between Cognyte and AudioCodes is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cognyte Software and AudioCodes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AudioCodes and Cognyte Software 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 Cognyte Software are associated (or correlated) with AudioCodes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AudioCodes has no effect on the direction of Cognyte Software i.e., Cognyte Software and AudioCodes go up and down completely randomly.

Pair Corralation between Cognyte Software and AudioCodes

Given the investment horizon of 90 days Cognyte Software is expected to generate 1.0 times more return on investment than AudioCodes. However, Cognyte Software is 1.0 times less risky than AudioCodes. It trades about 0.03 of its potential returns per unit of risk. AudioCodes is currently generating about -0.1 per unit of risk. If you would invest  872.00  in Cognyte Software on September 11, 2025 and sell it today you would earn a total of  25.00  from holding Cognyte Software or generate 2.87% return on investment over 90 days.

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

Cognyte Software  vs.  AudioCodes

Cognyte Software

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Cognyte Software are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Cognyte Software is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

AudioCodes

Risk-Adjusted Performance

Weakest

Over the last 90 days AudioCodes has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Cognyte Software and AudioCodes

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

The idea behind Cognyte Software and AudioCodes 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.