Correlation Between OneSpan and Repay Holdings
Can any of the company-specific risk be diversified away by investing in both OneSpan and Repay Holdings 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 Repay Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneSpan and Repay Holdings Corp, you can compare the effects of market volatilities on OneSpan and Repay Holdings 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 Repay Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSpan and Repay Holdings.
Diversification Opportunities for OneSpan and Repay Holdings
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OneSpan and Repay is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding OneSpan and Repay Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repay Holdings Corp 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 Repay Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repay Holdings Corp has no effect on the direction of OneSpan i.e., OneSpan and Repay Holdings go up and down completely randomly.
Pair Corralation between OneSpan and Repay Holdings
Given the investment horizon of 90 days OneSpan is expected to generate 1.33 times more return on investment than Repay Holdings. However, OneSpan is 1.33 times more volatile than Repay Holdings Corp. It trades about 0.08 of its potential returns per unit of risk. Repay Holdings Corp is currently generating about 0.02 per unit of risk. If you would invest 1,623 in OneSpan on August 26, 2024 and sell it today you would earn a total of 165.00 from holding OneSpan or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneSpan vs. Repay Holdings Corp
Performance |
| Timeline |
| OneSpan |
| Repay Holdings Corp |
OneSpan and Repay Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSpan and Repay Holdings
The main advantage of trading using opposite OneSpan and Repay Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSpan position performs unexpectedly, Repay Holdings 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 Repay Holdings will offset losses from the drop in Repay Holdings' long position.| OneSpan vs. Lesaka Technologies | OneSpan vs. Priority Technology Holdings | OneSpan vs. CSG Systems International | OneSpan vs. Sangoma Technologies Corp |
| Repay Holdings vs. Oneconnect Financial Technology | Repay Holdings vs. Global Business Travel | Repay Holdings vs. Alight Inc | Repay Holdings vs. CS Disco LLC |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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