Correlation Between Digital Media and OSI Systems
Can any of the company-specific risk be diversified away by investing in both Digital Media 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 Digital Media and OSI Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Media Solutions and OSI Systems, you can compare the effects of market volatilities on Digital Media 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 Digital Media with a short position of OSI Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Media and OSI Systems.
Diversification Opportunities for Digital Media and OSI Systems
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Digital and OSI is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Digital Media Solutions and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems and Digital Media 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 Digital Media Solutions 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 Digital Media i.e., Digital Media and OSI Systems go up and down completely randomly.
Pair Corralation between Digital Media and OSI Systems
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 | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Digital Media Solutions vs. OSI Systems
Performance |
| Timeline |
| Digital Media Solutions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| OSI Systems |
Digital Media and OSI Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Media and OSI Systems
The main advantage of trading using opposite Digital Media and OSI Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Media 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.| Digital Media vs. Advantage Solutions | Digital Media vs. Townsquare Media | Digital Media vs. Entravision Communications | Digital Media vs. Emerald Expositions Events |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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