Correlation Between Nice and Weave Communications

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

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

Diversification Opportunities for Nice and Weave Communications

0.27

Correlation Coefficient

Nice  Weave Communications

Modest diversification

The 3 months correlation between Nice and Weave is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Nice Ltd ADR and Weave Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weave Communications and Nice 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 Nice Ltd ADR are associated (or correlated) with Weave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weave Communications has no effect on the direction of Nice i.e., Nice and Weave Communications go up and down completely randomly.

Pair Corralation between Nice and Weave Communications

Given the investment horizon of 90 days Nice Ltd ADR is expected to generate 0.61 times more return on investment than Weave Communications. However, Nice Ltd ADR is 1.63 times less risky than Weave Communications. It trades about -0.02 of its potential returns per unit of risk. Weave Communications is currently generating about -0.19 per unit of risk. If you would invest  15,801  in Nice Ltd ADR on May 5, 2025 and sell it today you would lose (540.00) from holding Nice Ltd ADR or give up 3.42% of portfolio value over 90 days.

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

Nice Ltd ADR  vs.  Weave Communications

Nice Ltd ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nice Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Nice is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Weave Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Weave Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Nice and Weave Communications

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

The idea behind Nice Ltd ADR and Weave 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..