Correlation Between Widepoint and Usio

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

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

Diversification Opportunities for Widepoint and Usio

-0.1

Correlation Coefficient

Widepoint  Usio

Good diversification

The 3 months correlation between Widepoint and Usio is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Widepoint C and Usio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usio Inc and Widepoint 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 Widepoint C are associated (or correlated) with Usio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usio Inc has no effect on the direction of Widepoint i.e., Widepoint and Usio go up and down completely randomly.

Pair Corralation between Widepoint and Usio

Considering the 90-day investment horizon Widepoint C is expected to under-perform the Usio. In addition to that, Widepoint is 2.15 times more volatile than Usio Inc. It trades about -0.1 of its total potential returns per unit of risk. Usio Inc is currently generating about 0.08 per unit of volatility. If you would invest  149.00  in Usio Inc on May 6, 2025 and sell it today you would earn a total of  19.00  from holding Usio Inc or generate 12.75% return on investment over 90 days.

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

Widepoint C  vs.  Usio Inc

Widepoint C

Risk-Adjusted Performance

Very Weak

Over the last 90 days Widepoint C has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Usio Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Usio Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile forward indicators, Usio displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Widepoint and Usio

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

The idea behind Widepoint C and Usio Inc 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.