Correlation Between VHAI and OneSpan
Can any of the company-specific risk be diversified away by investing in both VHAI 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 VHAI and OneSpan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VHAI and OneSpan, you can compare the effects of market volatilities on VHAI 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 VHAI with a short position of OneSpan. Check out your portfolio center. Please also check ongoing floating volatility patterns of VHAI and OneSpan.
Diversification Opportunities for VHAI and OneSpan
Excellent diversification
The 3 months correlation between VHAI and OneSpan is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding VHAI and OneSpan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpan and VHAI 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 VHAI 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 VHAI i.e., VHAI and OneSpan go up and down completely randomly.
Pair Corralation between VHAI and OneSpan
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 Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
VHAI vs. OneSpan
Performance |
| Timeline |
| VHAI |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| OneSpan |
VHAI and OneSpan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VHAI and OneSpan
The main advantage of trading using opposite VHAI and OneSpan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VHAI 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.| VHAI vs. Chester Mining | VHAI vs. Air Products and | VHAI vs. Western Sierra Mining | VHAI vs. Origin Materials |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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