Correlation Between ForgeRock and OneSpan

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

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

Diversification Opportunities for ForgeRock and OneSpan

0.14

Correlation Coefficient

ForgeRock  OneSpan

Average diversification

The 3 months correlation between ForgeRock and OneSpan is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding ForgeRock and OneSpan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpan and ForgeRock 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 ForgeRock 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 ForgeRock i.e., ForgeRock and OneSpan go up and down completely randomly.

Pair Corralation between ForgeRock and OneSpan

If you would invest  1,788  in OneSpan on September 23, 2024 and sell it today you would earn a total of  37.00  from holding OneSpan or generate 2.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

ForgeRock  vs.  OneSpan

ForgeRock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ForgeRock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ForgeRock is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

OneSpan

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in OneSpan are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, OneSpan displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ForgeRock and OneSpan

The main advantage of trading using opposite ForgeRock and OneSpan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ForgeRock 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 ForgeRock 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.