Correlation Between Sangoma Technologies and OneSpan

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

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

Diversification Opportunities for Sangoma Technologies and OneSpan

0.86

Correlation Coefficient

Sangoma Technologies  OneSpan

Very poor diversification

The 3 months correlation between Sangoma and OneSpan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sangoma Technologies Corp and OneSpan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpan and Sangoma Technologies 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 Sangoma Technologies 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 Sangoma Technologies i.e., Sangoma Technologies and OneSpan go up and down completely randomly.

Pair Corralation between Sangoma Technologies and OneSpan

Given the investment horizon of 90 days Sangoma Technologies Corp is expected to under-perform the OneSpan. In addition to that, Sangoma Technologies is 1.38 times more volatile than OneSpan. It trades about -0.21 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	Strong
Accuracy	100.0%
Values	Daily Returns

Sangoma Technologies Corp  vs.  OneSpan

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.

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 Sangoma Technologies and OneSpan

The main advantage of trading using opposite Sangoma Technologies and OneSpan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangoma Technologies 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 Sangoma Technologies 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.