Correlation Between AudioCodes and Radware
Can any of the company-specific risk be diversified away by investing in both AudioCodes and Radware 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 Radware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AudioCodes and Radware, you can compare the effects of market volatilities on AudioCodes and Radware 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 Radware. Check out your portfolio center. Please also check ongoing floating volatility patterns of AudioCodes and Radware.
Diversification Opportunities for AudioCodes and Radware
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AudioCodes and Radware is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding AudioCodes and Radware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radware 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 Radware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radware has no effect on the direction of AudioCodes i.e., AudioCodes and Radware go up and down completely randomly.
Pair Corralation between AudioCodes and Radware
Given the investment horizon of 90 days AudioCodes is expected to under-perform the Radware. In addition to that, AudioCodes is 1.01 times more volatile than Radware. It trades about -0.1 of its total potential returns per unit of risk. Radware is currently generating about -0.04 per unit of volatility. If you would invest 2,798 in Radware on July 26, 2025 and sell it today you would lose (174.00) from holding Radware or give up 6.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AudioCodes vs. Radware
Performance |
| Timeline |
| AudioCodes |
| Radware |
AudioCodes and Radware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AudioCodes and Radware
The main advantage of trading using opposite AudioCodes and Radware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AudioCodes position performs unexpectedly, Radware 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 Radware will offset losses from the drop in Radware's long position.| AudioCodes vs. BK Technologies | AudioCodes vs. Aviat Networks | AudioCodes vs. Ceragon Networks | AudioCodes vs. Turtle Beach |
| Radware vs. Rapid7 Inc | Radware vs. GigaCloud Technology Class | Radware vs. Verint Systems | Radware vs. Yext Inc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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