Correlation Between Bel Fuse and Ostin Technology
Can any of the company-specific risk be diversified away by investing in both Bel Fuse and Ostin Technology 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 Bel Fuse and Ostin Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bel Fuse A and Ostin Technology Group, you can compare the effects of market volatilities on Bel Fuse and Ostin Technology 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 Bel Fuse with a short position of Ostin Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bel Fuse and Ostin Technology.
Diversification Opportunities for Bel Fuse and Ostin Technology
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bel and Ostin is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bel Fuse A and Ostin Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ostin Technology and Bel Fuse 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 Bel Fuse A are associated (or correlated) with Ostin Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ostin Technology has no effect on the direction of Bel Fuse i.e., Bel Fuse and Ostin Technology go up and down completely randomly.
Pair Corralation between Bel Fuse and Ostin Technology
Assuming the 90 days horizon Bel Fuse A is expected to generate 0.33 times more return on investment than Ostin Technology. However, Bel Fuse A is 2.99 times less risky than Ostin Technology. It trades about 0.1 of its potential returns per unit of risk. Ostin Technology Group is currently generating about -0.01 per unit of risk. If you would invest 4,655 in Bel Fuse A on September 12, 2024 and sell it today you would earn a total of 5,266 from holding Bel Fuse A or generate 113.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Bel Fuse A vs. Ostin Technology Group
Performance |
| Timeline |
| Bel Fuse A |
| Ostin Technology |
Bel Fuse and Ostin Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bel Fuse and Ostin Technology
The main advantage of trading using opposite Bel Fuse and Ostin Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bel Fuse position performs unexpectedly, Ostin Technology 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 Ostin Technology will offset losses from the drop in Ostin Technology's long position.| Bel Fuse vs. Benchmark Electronics | Bel Fuse vs. Flex | Bel Fuse vs. Sanmina | Bel Fuse vs. Methode Electronics |
| Ostin Technology vs. Benchmark Electronics | Ostin Technology vs. Flex | Ostin Technology vs. Sanmina | Ostin Technology vs. Bel Fuse A |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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