Correlation Between Com Guard and OneSpan

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Can any of the company-specific risk be diversified away by investing in both Com Guard 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 Com Guard and OneSpan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com GuardCom and OneSpan, you can compare the effects of market volatilities on Com Guard 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 Com Guard with a short position of OneSpan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com Guard and OneSpan.

Diversification Opportunities for Com Guard and OneSpan

-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between Com and OneSpan is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Com GuardCom and OneSpan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpan and Com Guard 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 Com GuardCom 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 Com Guard i.e., Com Guard and OneSpan go up and down completely randomly.

Pair Corralation between Com Guard and OneSpan

Given the investment horizon of 90 days Com GuardCom is expected to generate 3.78 times more return on investment than OneSpan. However, Com Guard is 3.78 times more volatile than OneSpan. It trades about 0.08 of its potential returns per unit of risk. OneSpan is currently generating about -0.05 per unit of risk. If you would invest  0.08  in Com GuardCom on August 30, 2025 and sell it today you would earn a total of  0.01  from holding Com GuardCom or generate 12.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Com GuardCom  vs.  OneSpan

 Performance 
       Timeline  
Com GuardCom 

Risk-Adjusted Performance

Mild

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

Risk-Adjusted Performance

Weakest

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

Com Guard and OneSpan Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Com Guard and OneSpan

The main advantage of trading using opposite Com Guard and OneSpan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com Guard 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 Com GuardCom 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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