Correlation Between OneSpan and Amalgamated Bank

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

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

Diversification Opportunities for OneSpan and Amalgamated Bank

0.53

Correlation Coefficient

OneSpan  Amalgamated Bank

Very weak diversification

The 3 months correlation between OneSpan and Amalgamated is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding OneSpan and Amalgamated Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amalgamated Bank 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 Amalgamated Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amalgamated Bank has no effect on the direction of OneSpan i.e., OneSpan and Amalgamated Bank go up and down completely randomly.

Pair Corralation between OneSpan and Amalgamated Bank

Given the investment horizon of 90 days OneSpan is expected to under-perform the Amalgamated Bank. In addition to that, OneSpan is 1.25 times more volatile than Amalgamated Bank. It trades about -0.1 of its total potential returns per unit of risk. Amalgamated Bank is currently generating about -0.01 per unit of volatility. If you would invest  3,034  in Amalgamated Bank on May 17, 2025 and sell it today you would lose (89.00) from holding Amalgamated Bank or give up 2.93% of portfolio value over 90 days.

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

OneSpan  vs.  Amalgamated Bank

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.

Amalgamated Bank

Risk-Adjusted Performance

Weakest

Over the last 90 days Amalgamated Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Amalgamated Bank is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with OneSpan and Amalgamated Bank

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

The idea behind OneSpan and Amalgamated Bank 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.