Correlation Between FINEOS Holdings and Allot Communications

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

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

Diversification Opportunities for FINEOS Holdings and Allot Communications

0.0

Correlation Coefficient

FINEOS Holdings  Allot Communications

Pay attention - limited upside

The 3 months correlation between FINEOS and Allot is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FINEOS Holdings and Allot Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allot Communications and FINEOS Holdings 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 FINEOS Holdings are associated (or correlated) with Allot Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allot Communications has no effect on the direction of FINEOS Holdings i.e., FINEOS Holdings and Allot Communications go up and down completely randomly.

Pair Corralation between FINEOS Holdings and Allot Communications

If you would invest  782.00  in Allot Communications on July 25, 2025 and sell it today you would earn a total of  161.00  from holding Allot Communications or generate 20.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

FINEOS Holdings  vs.  Allot Communications

FINEOS Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days FINEOS Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, FINEOS Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Allot Communications

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Allot Communications are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting essential indicators, Allot Communications unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FINEOS Holdings and Allot Communications

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

The idea behind FINEOS Holdings and Allot Communications 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.