Correlation Between DigiAsia Corp and OneSpan

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

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

Diversification Opportunities for DigiAsia Corp and OneSpan

0.46

Correlation Coefficient

DigiAsia Corp  OneSpan

Very weak diversification

The 3 months correlation between DigiAsia and OneSpan is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding DigiAsia Corp and OneSpan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpan and DigiAsia Corp 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 DigiAsia 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 DigiAsia Corp i.e., DigiAsia Corp and OneSpan go up and down completely randomly.

Pair Corralation between DigiAsia Corp and OneSpan

Given the investment horizon of 90 days DigiAsia Corp is expected to under-perform the OneSpan. In addition to that, DigiAsia Corp is 4.98 times more volatile than OneSpan. It trades about -0.14 of its total potential returns per unit of risk. OneSpan is currently generating about -0.11 per unit of volatility. If you would invest  1,865  in OneSpan on December 29, 2024 and sell it today you would lose (319.00) from holding OneSpan or give up 17.1% of portfolio value over 90 days.

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

DigiAsia Corp  vs.  OneSpan

DigiAsia Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days DigiAsia Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

OneSpan

Risk-Adjusted Performance

Very Weak

Over the last 90 days OneSpan has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with DigiAsia Corp and OneSpan

The main advantage of trading using opposite DigiAsia Corp and OneSpan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiAsia Corp 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.

The idea behind DigiAsia Corp and OneSpan 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.