Correlation Between Amphenol and OSI Systems
Can any of the company-specific risk be diversified away by investing in both Amphenol and OSI Systems 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 Amphenol and OSI Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphenol and OSI Systems, you can compare the effects of market volatilities on Amphenol and OSI Systems 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 Amphenol with a short position of OSI Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphenol and OSI Systems.
Diversification Opportunities for Amphenol and OSI Systems
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amphenol and OSI is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Amphenol and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems and Amphenol 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 Amphenol are associated (or correlated) with OSI Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSI Systems has no effect on the direction of Amphenol i.e., Amphenol and OSI Systems go up and down completely randomly.
Pair Corralation between Amphenol and OSI Systems
Considering the 90-day investment horizon Amphenol is expected to generate 3.8 times less return on investment than OSI Systems. But when comparing it to its historical volatility, Amphenol is 1.35 times less risky than OSI Systems. It trades about 0.19 of its potential returns per unit of risk. OSI Systems is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 13,141 in OSI Systems on August 27, 2024 and sell it today you would earn a total of 3,758 from holding OSI Systems or generate 28.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amphenol vs. OSI Systems
Performance |
| Timeline |
| Amphenol |
| OSI Systems |
Amphenol and OSI Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amphenol and OSI Systems
The main advantage of trading using opposite Amphenol and OSI Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphenol position performs unexpectedly, OSI Systems 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 OSI Systems will offset losses from the drop in OSI Systems' long position.| Amphenol vs. Plexus Corp | Amphenol vs. Jabil Circuit | Amphenol vs. Sanmina | Amphenol vs. Methode Electronics |
| OSI Systems vs. Plexus Corp | OSI Systems vs. Jabil Circuit | OSI Systems vs. Sanmina | OSI Systems vs. Methode Electronics |
Check out your portfolio center.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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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