Correlation Between Unitronics and AudioCodes

Can any of the company-specific risk be diversified away by investing in both Unitronics 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 Unitronics and AudioCodes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Unitronics and AudioCodes, you can compare the effects of market volatilities on Unitronics 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 Unitronics with a short position of AudioCodes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unitronics and AudioCodes.

Diversification Opportunities for Unitronics and AudioCodes

-0.13

Correlation Coefficient

Unitronics  AudioCodes

Good diversification

The 3 months correlation between Unitronics and AudioCodes is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Unitronics and AudioCodes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AudioCodes and Unitronics 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 Unitronics 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 Unitronics i.e., Unitronics and AudioCodes go up and down completely randomly.

Pair Corralation between Unitronics and AudioCodes

Assuming the 90 days trading horizon Unitronics is expected to under-perform the AudioCodes. But the stock apears to be less risky and, when comparing its historical volatility, Unitronics is 1.89 times less risky than AudioCodes. The stock trades about -0.06 of its potential returns per unit of risk. The AudioCodes is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  344,300  in AudioCodes on April 25, 2025 and sell it today you would earn a total of  15,500  from holding AudioCodes or generate 4.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Unitronics  vs.  AudioCodes

Unitronics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Unitronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

AudioCodes

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AudioCodes are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, AudioCodes may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Unitronics and AudioCodes

The main advantage of trading using opposite Unitronics and AudioCodes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unitronics 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 Unitronics 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.