Correlation Between OneSpan and Sangoma Technologies

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

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

Diversification Opportunities for OneSpan and Sangoma Technologies

0.86

Correlation Coefficient

OneSpan  Sangoma Technologies

Very poor diversification

The 3 months correlation between OneSpan and Sangoma is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding OneSpan and Sangoma Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangoma Technologies 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 Sangoma Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangoma Technologies Corp has no effect on the direction of OneSpan i.e., OneSpan and Sangoma Technologies go up and down completely randomly.

Pair Corralation between OneSpan and Sangoma Technologies

Given the investment horizon of 90 days OneSpan is expected to generate 0.73 times more return on investment than Sangoma Technologies. However, OneSpan is 1.38 times less risky than Sangoma Technologies. It trades about -0.11 of its potential returns per unit of risk. Sangoma Technologies Corp is currently generating about -0.21 per unit of risk. 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	Strong
Accuracy	100.0%
Values	Daily Returns

OneSpan  vs.  Sangoma Technologies Corp

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.

Sangoma Technologies Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sangoma Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with OneSpan and Sangoma Technologies

The main advantage of trading using opposite OneSpan and Sangoma Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSpan position performs unexpectedly, Sangoma Technologies 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 Sangoma Technologies will offset losses from the drop in Sangoma Technologies' long position.

The idea behind OneSpan and Sangoma Technologies Corp 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.