Correlation Between Elbit Systems and AudioCodes
Can any of the company-specific risk be diversified away by investing in both Elbit Systems 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 Elbit Systems and AudioCodes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Systems and AudioCodes, you can compare the effects of market volatilities on Elbit Systems 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 Elbit Systems with a short position of AudioCodes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Systems and AudioCodes.
Diversification Opportunities for Elbit Systems and AudioCodes
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Elbit and AudioCodes is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Systems and AudioCodes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AudioCodes and Elbit Systems 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 Elbit Systems 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 Elbit Systems i.e., Elbit Systems and AudioCodes go up and down completely randomly.
Pair Corralation between Elbit Systems and AudioCodes
Given the investment horizon of 90 days Elbit Systems is expected to generate 0.84 times more return on investment than AudioCodes. However, Elbit Systems is 1.19 times less risky than AudioCodes. It trades about 0.07 of its potential returns per unit of risk. AudioCodes is currently generating about -0.01 per unit of risk. If you would invest 40,438 in Elbit Systems on March 25, 2025 and sell it today you would earn a total of 3,409 from holding Elbit Systems or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elbit Systems vs. AudioCodes
Performance |
| Timeline |
| Elbit Systems |
| AudioCodes |
Elbit Systems and AudioCodes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Systems and AudioCodes
The main advantage of trading using opposite Elbit Systems and AudioCodes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Systems 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.| Elbit Systems vs. Mercury Systems | Elbit Systems vs. Triumph Group | Elbit Systems vs. CAE Inc | Elbit Systems vs. AAR Corp |
| AudioCodes vs. Aviat Networks | AudioCodes vs. Silicom | AudioCodes vs. Gilat Satellite Networks | AudioCodes vs. Cambium Networks Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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