Correlation Between Repay Holdings and OneSpan
Can any of the company-specific risk be diversified away by investing in both Repay Holdings and OneSpan 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 Repay Holdings and OneSpan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repay Holdings Corp and OneSpan, you can compare the effects of market volatilities on Repay Holdings and OneSpan 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 Repay Holdings with a short position of OneSpan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repay Holdings and OneSpan.
Diversification Opportunities for Repay Holdings and OneSpan
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Repay and OneSpan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Repay Holdings Corp and OneSpan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpan and Repay Holdings 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 Repay Holdings Corp are associated (or correlated) with OneSpan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSpan has no effect on the direction of Repay Holdings i.e., Repay Holdings and OneSpan go up and down completely randomly.
Pair Corralation between Repay Holdings and OneSpan
Given the investment horizon of 90 days Repay Holdings is expected to generate 3.01 times less return on investment than OneSpan. But when comparing it to its historical volatility, Repay Holdings Corp is 1.29 times less risky than OneSpan. It trades about 0.09 of its potential returns per unit of risk. OneSpan is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,501 in OneSpan on August 23, 2024 and sell it today you would earn a total of 266.00 from holding OneSpan or generate 17.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repay Holdings Corp vs. OneSpan
Performance |
| Timeline |
| Repay Holdings Corp |
| OneSpan |
Repay Holdings and OneSpan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repay Holdings and OneSpan
The main advantage of trading using opposite Repay Holdings and OneSpan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repay Holdings position performs unexpectedly, OneSpan 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 OneSpan will offset losses from the drop in OneSpan's long position.| Repay Holdings vs. Global Blue Group | Repay Holdings vs. Optiva Inc | Repay Holdings vs. Sangoma Technologies Corp | Repay Holdings vs. Evertec |
| OneSpan vs. Lesaka Technologies | OneSpan vs. Priority Technology Holdings | OneSpan vs. CSG Systems International | OneSpan vs. Sangoma Technologies 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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