Correlation Between OSI Systems and IMedia Brands
Can any of the company-specific risk be diversified away by investing in both OSI Systems and IMedia Brands 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 IMedia Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSI Systems and IMedia Brands, you can compare the effects of market volatilities on OSI Systems and IMedia Brands 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 IMedia Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSI Systems and IMedia Brands.
Diversification Opportunities for OSI Systems and IMedia Brands
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OSI and IMedia is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and IMedia Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMedia Brands 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 IMedia Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMedia Brands has no effect on the direction of OSI Systems i.e., OSI Systems and IMedia Brands go up and down completely randomly.
Pair Corralation between OSI Systems and IMedia Brands
If you would invest 11,247 in OSI Systems on September 19, 2024 and sell it today you would earn a total of 6,334 from holding OSI Systems or generate 56.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.34% |
| Values | Daily Returns |
OSI Systems vs. IMedia Brands
Performance |
| Timeline |
| OSI Systems |
| IMedia Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OSI Systems and IMedia Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSI Systems and IMedia Brands
The main advantage of trading using opposite OSI Systems and IMedia Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSI Systems position performs unexpectedly, IMedia Brands 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 IMedia Brands will offset losses from the drop in IMedia Brands' long position.| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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