Correlation Between OneSpan and Usio

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

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

Diversification Opportunities for OneSpan and Usio

0.22

Correlation Coefficient

OneSpan  Usio

Modest diversification

The 3 months correlation between OneSpan and Usio is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding OneSpan and Usio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usio Inc 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 Usio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usio Inc has no effect on the direction of OneSpan i.e., OneSpan and Usio go up and down completely randomly.

Pair Corralation between OneSpan and Usio

Given the investment horizon of 90 days OneSpan is expected to generate 0.95 times more return on investment than Usio. However, OneSpan is 1.05 times less risky than Usio. It trades about 0.04 of its potential returns per unit of risk. Usio Inc is currently generating about 0.01 per unit of risk. If you would invest  1,155  in OneSpan on September 26, 2024 and sell it today you would earn a total of  684.00  from holding OneSpan or generate 59.22% return on investment over 90 days.

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

OneSpan  vs.  Usio Inc

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.

Usio Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Usio Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Usio is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with OneSpan and Usio

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

The idea behind OneSpan and Usio Inc 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..