Correlation Between OSI Systems and Celestica
Can any of the company-specific risk be diversified away by investing in both OSI Systems and Celestica 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 Celestica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSI Systems and Celestica, you can compare the effects of market volatilities on OSI Systems and Celestica 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 Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSI Systems and Celestica.
Diversification Opportunities for OSI Systems and Celestica
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OSI and Celestica is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica 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 Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of OSI Systems i.e., OSI Systems and Celestica go up and down completely randomly.
Pair Corralation between OSI Systems and Celestica
Given the investment horizon of 90 days OSI Systems is expected to generate 3.08 times less return on investment than Celestica. But when comparing it to its historical volatility, OSI Systems is 1.71 times less risky than Celestica. It trades about 0.27 of its potential returns per unit of risk. Celestica is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 5,747 in Celestica on August 24, 2024 and sell it today you would earn a total of 3,397 from holding Celestica or generate 59.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OSI Systems vs. Celestica
Performance |
| Timeline |
| OSI Systems |
| Celestica |
OSI Systems and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSI Systems and Celestica
The main advantage of trading using opposite OSI Systems and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSI Systems position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica's long position.| OSI Systems vs. Sanmina | OSI Systems vs. Benchmark Electronics | OSI Systems vs. Methode Electronics | OSI Systems vs. Celestica |
| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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