Correlation Between Cogent Biosciences and OSI Systems
Can any of the company-specific risk be diversified away by investing in both Cogent Biosciences 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 Cogent Biosciences and OSI Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogent Biosciences and OSI Systems, you can compare the effects of market volatilities on Cogent Biosciences 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 Cogent Biosciences with a short position of OSI Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Biosciences and OSI Systems.
Diversification Opportunities for Cogent Biosciences and OSI Systems
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cogent and OSI is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Biosciences and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems and Cogent Biosciences 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 Cogent Biosciences 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 Cogent Biosciences i.e., Cogent Biosciences and OSI Systems go up and down completely randomly.
Pair Corralation between Cogent Biosciences and OSI Systems
Given the investment horizon of 90 days Cogent Biosciences is expected to under-perform the OSI Systems. In addition to that, Cogent Biosciences is 2.27 times more volatile than OSI Systems. It trades about -0.11 of its total potential returns per unit of risk. OSI Systems is currently generating about 0.6 per unit of volatility. If you would invest 15,222 in OSI Systems on September 19, 2024 and sell it today you would earn a total of 3,146 from holding OSI Systems or generate 20.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogent Biosciences vs. OSI Systems
Performance |
| Timeline |
| Cogent Biosciences |
| OSI Systems |
Cogent Biosciences and OSI Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Biosciences and OSI Systems
The main advantage of trading using opposite Cogent Biosciences and OSI Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Biosciences 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.| Cogent Biosciences vs. Larimar Therapeutics | Cogent Biosciences vs. Kura Oncology | Cogent Biosciences vs. Kiniksa Pharmaceuticals | Cogent Biosciences vs. Ideaya Biosciences |
| OSI Systems vs. Sanmina | OSI Systems vs. Benchmark Electronics | OSI Systems vs. Methode Electronics | OSI Systems vs. Celestica |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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