Correlation Between Amdocs and OneSpan

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

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

Diversification Opportunities for Amdocs and OneSpan

0.65

Correlation Coefficient

Amdocs  OneSpan

Poor diversification

The 3 months correlation between Amdocs and OneSpan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Amdocs and OneSpan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpan and Amdocs 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 Amdocs 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 Amdocs i.e., Amdocs and OneSpan go up and down completely randomly.

Pair Corralation between Amdocs and OneSpan

Considering the 90-day investment horizon Amdocs is expected to generate 0.51 times more return on investment than OneSpan. However, Amdocs is 1.97 times less risky than OneSpan. It trades about -0.01 of its potential returns per unit of risk. OneSpan is currently generating about -0.15 per unit of risk. If you would invest  9,059  in Amdocs on May 13, 2025 and sell it today you would lose (118.00) from holding Amdocs or give up 1.3% of portfolio value over 90 days.

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

Amdocs  vs.  OneSpan

Amdocs

Risk-Adjusted Performance

Weakest

Over the last 90 days Amdocs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Amdocs is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

OneSpan

Risk-Adjusted Performance

Weakest

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

Pair Trading with Amdocs and OneSpan

The main advantage of trading using opposite Amdocs and OneSpan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amdocs 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 Amdocs 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.