Correlation Between Hubei Yingtong and AudioCodes

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Can any of the company-specific risk be diversified away by investing in both Hubei Yingtong 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 Hubei Yingtong and AudioCodes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hubei Yingtong Telecommunication and AudioCodes, you can compare the effects of market volatilities on Hubei Yingtong 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 Hubei Yingtong with a short position of AudioCodes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and AudioCodes.

Diversification Opportunities for Hubei Yingtong and AudioCodes

-0.42
  Correlation Coefficient

Very good diversification

The 3 months correlation between Hubei and AudioCodes is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati and AudioCodes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AudioCodes and Hubei Yingtong 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 Hubei Yingtong Telecommunication 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 Hubei Yingtong i.e., Hubei Yingtong and AudioCodes go up and down completely randomly.

Pair Corralation between Hubei Yingtong and AudioCodes

Assuming the 90 days trading horizon Hubei Yingtong Telecommunication is expected to generate 1.33 times more return on investment than AudioCodes. However, Hubei Yingtong is 1.33 times more volatile than AudioCodes. It trades about 0.17 of its potential returns per unit of risk. AudioCodes is currently generating about -0.01 per unit of risk. If you would invest  1,573  in Hubei Yingtong Telecommunication on August 13, 2025 and sell it today you would earn a total of  423.00  from holding Hubei Yingtong Telecommunication or generate 26.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy92.06%
ValuesDaily Returns

Hubei Yingtong Telecommunicati  vs.  AudioCodes

 Performance 
       Timeline  
Hubei Yingtong Telec 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hubei Yingtong Telecommunication are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Hubei Yingtong sustained solid returns over the last few months and may actually be approaching a breakup point.
AudioCodes 

Risk-Adjusted Performance

Weakest

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

Hubei Yingtong and AudioCodes Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hubei Yingtong and AudioCodes

The main advantage of trading using opposite Hubei Yingtong and AudioCodes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong 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 Hubei Yingtong Telecommunication 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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