Correlation Between OSI Systems and China Power
Can any of the company-specific risk be diversified away by investing in both OSI Systems and China Power 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 China Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSI Systems and China Power Equipment, you can compare the effects of market volatilities on OSI Systems and China Power 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 China Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSI Systems and China Power.
Diversification Opportunities for OSI Systems and China Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OSI and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and China Power Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Power Equipment 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 China Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Power Equipment has no effect on the direction of OSI Systems i.e., OSI Systems and China Power go up and down completely randomly.
Pair Corralation between OSI Systems and China Power
If you would invest 14,232 in OSI Systems on September 3, 2024 and sell it today you would earn a total of 3,508 from holding OSI Systems or generate 24.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OSI Systems vs. China Power Equipment
Performance |
| Timeline |
| OSI Systems |
| China Power Equipment |
OSI Systems and China Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSI Systems and China Power
The main advantage of trading using opposite OSI Systems and China Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSI Systems position performs unexpectedly, China Power 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 China Power will offset losses from the drop in China Power's long position.| OSI Systems vs. Sanmina | OSI Systems vs. Benchmark Electronics | OSI Systems vs. Methode Electronics | OSI Systems vs. Celestica |
| China Power vs. KULR Technology Group | China Power vs. Ouster Inc | China Power vs. MicroCloud Hologram | China Power vs. Kopin |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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