Correlation Between Cps Technologies and AudioCodes

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

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

Diversification Opportunities for Cps Technologies and AudioCodes

0.4

Correlation Coefficient

Cps Technologies  AudioCodes

Very weak diversification

The 3 months correlation between Cps and AudioCodes is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cps Technologies and AudioCodes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AudioCodes and Cps Technologies 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 Cps Technologies 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 Cps Technologies i.e., Cps Technologies and AudioCodes go up and down completely randomly.

Pair Corralation between Cps Technologies and AudioCodes

Given the investment horizon of 90 days Cps Technologies is expected to generate 1.61 times more return on investment than AudioCodes. However, Cps Technologies is 1.61 times more volatile than AudioCodes. It trades about 0.16 of its potential returns per unit of risk. AudioCodes is currently generating about 0.06 per unit of risk. If you would invest  209.00  in Cps Technologies on May 17, 2025 and sell it today you would earn a total of  121.00  from holding Cps Technologies or generate 57.89% return on investment over 90 days.

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

Cps Technologies  vs.  AudioCodes

Cps Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cps Technologies are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Cps Technologies demonstrated solid returns over the last few months and may actually be approaching a breakup point.

AudioCodes

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in AudioCodes are ranked lower than 4 (%) 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.

Pair Trading with Cps Technologies and AudioCodes

The main advantage of trading using opposite Cps Technologies and AudioCodes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cps Technologies 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 Cps Technologies 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.