Correlation Between OSI Systems and Allied Motion
Can any of the company-specific risk be diversified away by investing in both OSI Systems and Allied Motion 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 OSI Systems and Allied Motion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSI Systems and Allied Motion Technologies, you can compare the effects of market volatilities on OSI Systems and Allied Motion 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 OSI Systems with a short position of Allied Motion. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSI Systems and Allied Motion.
Diversification Opportunities for OSI Systems and Allied Motion
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OSI and Allied is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and Allied Motion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Motion Techno and OSI Systems 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 OSI Systems are associated (or correlated) with Allied Motion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Motion Techno has no effect on the direction of OSI Systems i.e., OSI Systems and Allied Motion go up and down completely randomly.
Pair Corralation between OSI Systems and Allied Motion
If you would invest 16,402 in OSI Systems on November 5, 2024 and sell it today you would earn a total of 3,242 from holding OSI Systems or generate 19.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
OSI Systems vs. Allied Motion Technologies
Performance |
| Timeline |
| OSI Systems |
| Allied Motion Techno |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OSI Systems and Allied Motion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSI Systems and Allied Motion
The main advantage of trading using opposite OSI Systems and Allied Motion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSI Systems position performs unexpectedly, Allied Motion 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 Allied Motion will offset losses from the drop in Allied Motion's long position.| OSI Systems vs. Sanmina | OSI Systems vs. Benchmark Electronics | OSI Systems vs. Methode Electronics | OSI Systems vs. Celestica |
| Allied Motion vs. Plexus Corp | Allied Motion vs. Sanmina | Allied Motion vs. Bel Fuse A | Allied Motion 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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