Correlation Between Radcom and Resolute Holdings

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

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

Diversification Opportunities for Radcom and Resolute Holdings

0.36

Correlation Coefficient

Radcom  Resolute Holdings

Weak diversification

The 3 months correlation between Radcom and Resolute is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Radcom and Resolute Holdings Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resolute Holdings and Radcom 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 Radcom are associated (or correlated) with Resolute Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resolute Holdings has no effect on the direction of Radcom i.e., Radcom and Resolute Holdings go up and down completely randomly.

Pair Corralation between Radcom and Resolute Holdings

Given the investment horizon of 90 days Radcom is expected to generate 4.09 times less return on investment than Resolute Holdings. But when comparing it to its historical volatility, Radcom is 1.7 times less risky than Resolute Holdings. It trades about 0.06 of its potential returns per unit of risk. Resolute Holdings Management is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  2,780  in Resolute Holdings Management on May 7, 2025 and sell it today you would earn a total of  1,346  from holding Resolute Holdings Management or generate 48.42% return on investment over 90 days.

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

Radcom  vs.  Resolute Holdings Management

Radcom

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Radcom are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Radcom may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Resolute Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Resolute Holdings Management are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile essential indicators, Resolute Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Radcom and Resolute Holdings

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

The idea behind Radcom and Resolute Holdings Management 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.