Correlation Between OneSpan and Pimco New

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

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

Diversification Opportunities for OneSpan and Pimco New

0.45

Correlation Coefficient

OneSpan  Pimco New

Very weak diversification

The 3 months correlation between OneSpan and Pimco is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding OneSpan and Pimco New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco New York 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 Pimco New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco New York has no effect on the direction of OneSpan i.e., OneSpan and Pimco New go up and down completely randomly.

Pair Corralation between OneSpan and Pimco New

Given the investment horizon of 90 days OneSpan is expected to under-perform the Pimco New. In addition to that, OneSpan is 3.52 times more volatile than Pimco New York. It trades about -0.03 of its total potential returns per unit of risk. Pimco New York is currently generating about -0.08 per unit of volatility. If you would invest  531.00  in Pimco New York on May 5, 2025 and sell it today you would lose (16.00) from holding Pimco New York or give up 3.01% of portfolio value over 90 days.

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

OneSpan  vs.  Pimco New York

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 very healthy basic indicators, OneSpan is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pimco New York

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pimco New York has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, Pimco New is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with OneSpan and Pimco New

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

The idea behind OneSpan and Pimco New York 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.