Correlation Between OneSpan and Ituran Location

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

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

Diversification Opportunities for OneSpan and Ituran Location

-0.42

Correlation Coefficient

OneSpan  Ituran Location

Very good diversification

The 3 months correlation between OneSpan and Ituran is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding OneSpan and Ituran Location and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ituran Location 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 Ituran Location. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ituran Location has no effect on the direction of OneSpan i.e., OneSpan and Ituran Location go up and down completely randomly.

Pair Corralation between OneSpan and Ituran Location

Given the investment horizon of 90 days OneSpan is expected to under-perform the Ituran Location. In addition to that, OneSpan is 1.38 times more volatile than Ituran Location and. It trades about -0.1 of its total potential returns per unit of risk. Ituran Location and is currently generating about 0.1 per unit of volatility. If you would invest  3,730  in Ituran Location and on May 17, 2025 and sell it today you would earn a total of  393.00  from holding Ituran Location and or generate 10.54% return on investment over 90 days.

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

OneSpan  vs.  Ituran Location and

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.

Ituran Location

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Ituran Location and are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Ituran Location may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with OneSpan and Ituran Location

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

The idea behind OneSpan and Ituran Location and 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.