Correlation Between Insmed and AudioCodes
Can any of the company-specific risk be diversified away by investing in both Insmed 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 Insmed and AudioCodes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insmed Inc and AudioCodes, you can compare the effects of market volatilities on Insmed 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 Insmed with a short position of AudioCodes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insmed and AudioCodes.
Diversification Opportunities for Insmed and AudioCodes
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Insmed and AudioCodes is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Insmed Inc and AudioCodes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AudioCodes and Insmed 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 Insmed Inc 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 Insmed i.e., Insmed and AudioCodes go up and down completely randomly.
Pair Corralation between Insmed and AudioCodes
Given the investment horizon of 90 days Insmed Inc is expected to generate 0.99 times more return on investment than AudioCodes. However, Insmed Inc is 1.02 times less risky than AudioCodes. It trades about 0.38 of its potential returns per unit of risk. AudioCodes is currently generating about -0.1 per unit of risk. If you would invest 10,278 in Insmed Inc on July 21, 2025 and sell it today you would earn a total of 6,298 from holding Insmed Inc or generate 61.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insmed Inc vs. AudioCodes
Performance |
| Timeline |
| Insmed Inc |
| AudioCodes |
Insmed and AudioCodes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insmed and AudioCodes
The main advantage of trading using opposite Insmed and AudioCodes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insmed 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.| Insmed vs. BeiGene, | Insmed vs. GE HealthCare Technologies | Insmed vs. IQVIA Holdings | Insmed vs. Cardinal Health |
| AudioCodes vs. BK Technologies | AudioCodes vs. Aviat Networks | AudioCodes vs. Ceragon Networks | AudioCodes vs. Turtle Beach |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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