Correlation Between AudioCodes and LivePerson
Can any of the company-specific risk be diversified away by investing in both AudioCodes and LivePerson 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 AudioCodes and LivePerson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AudioCodes and LivePerson, you can compare the effects of market volatilities on AudioCodes and LivePerson 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 AudioCodes with a short position of LivePerson. Check out your portfolio center. Please also check ongoing floating volatility patterns of AudioCodes and LivePerson.
Diversification Opportunities for AudioCodes and LivePerson
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AudioCodes and LivePerson is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding AudioCodes and LivePerson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LivePerson and AudioCodes 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 AudioCodes are associated (or correlated) with LivePerson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LivePerson has no effect on the direction of AudioCodes i.e., AudioCodes and LivePerson go up and down completely randomly.
Pair Corralation between AudioCodes and LivePerson
Given the investment horizon of 90 days AudioCodes is expected to generate 0.26 times more return on investment than LivePerson. However, AudioCodes is 3.82 times less risky than LivePerson. It trades about -0.1 of its potential returns per unit of risk. LivePerson is currently generating about -0.13 per unit of risk. If you would invest 1,061 in AudioCodes on July 20, 2025 and sell it today you would lose (147.00) from holding AudioCodes or give up 13.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AudioCodes vs. LivePerson
Performance |
| Timeline |
| AudioCodes |
| LivePerson |
AudioCodes and LivePerson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AudioCodes and LivePerson
The main advantage of trading using opposite AudioCodes and LivePerson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AudioCodes position performs unexpectedly, LivePerson 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 LivePerson will offset losses from the drop in LivePerson's long position.| AudioCodes vs. ADTRAN Inc | AudioCodes vs. Allot Communications | AudioCodes vs. Aviat Networks | AudioCodes vs. Camtek |
| LivePerson vs. Nice Ltd ADR | LivePerson vs. Weave Communications | LivePerson vs. 8x8 Common Stock | LivePerson vs. Mitek Systems |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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