Correlation Between OneSpan and Arco Platform
Can any of the company-specific risk be diversified away by investing in both OneSpan and Arco Platform 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 OneSpan and Arco Platform into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneSpan and Arco Platform, you can compare the effects of market volatilities on OneSpan and Arco Platform 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 OneSpan with a short position of Arco Platform. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSpan and Arco Platform.
Diversification Opportunities for OneSpan and Arco Platform
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OneSpan and Arco is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding OneSpan and Arco Platform in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arco Platform and OneSpan 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 OneSpan are associated (or correlated) with Arco Platform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arco Platform has no effect on the direction of OneSpan i.e., OneSpan and Arco Platform go up and down completely randomly.
Pair Corralation between OneSpan and Arco Platform
Given the investment horizon of 90 days OneSpan is expected to generate 1.4 times more return on investment than Arco Platform. However, OneSpan is 1.4 times more volatile than Arco Platform. It trades about 0.04 of its potential returns per unit of risk. Arco Platform is currently generating about 0.02 per unit of risk. If you would invest 1,189 in OneSpan on August 31, 2024 and sell it today you would earn a total of 623.00 from holding OneSpan or generate 52.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 28.45% |
| Values | Daily Returns |
OneSpan vs. Arco Platform
Performance |
| Timeline |
| OneSpan |
| Arco Platform |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OneSpan and Arco Platform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSpan and Arco Platform
The main advantage of trading using opposite OneSpan and Arco Platform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSpan position performs unexpectedly, Arco Platform 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 Arco Platform will offset losses from the drop in Arco Platform's long position.| OneSpan vs. Lesaka Technologies | OneSpan vs. Priority Technology Holdings | OneSpan vs. CSG Systems International | OneSpan vs. Sangoma Technologies Corp |
| Arco Platform vs. Adtalem Global Education | Arco Platform vs. American Public Education | Arco Platform vs. Laureate Education | Arco Platform vs. Grand Canyon Education |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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