Correlation Between OSI Systems and Littelfuse
Can any of the company-specific risk be diversified away by investing in both OSI Systems and Littelfuse 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 Littelfuse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSI Systems and Littelfuse, you can compare the effects of market volatilities on OSI Systems and Littelfuse 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 Littelfuse. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSI Systems and Littelfuse.
Diversification Opportunities for OSI Systems and Littelfuse
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between OSI and Littelfuse is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and Littelfuse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Littelfuse 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 Littelfuse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Littelfuse has no effect on the direction of OSI Systems i.e., OSI Systems and Littelfuse go up and down completely randomly.
Pair Corralation between OSI Systems and Littelfuse
Given the investment horizon of 90 days OSI Systems is expected to generate 1.31 times more return on investment than Littelfuse. However, OSI Systems is 1.31 times more volatile than Littelfuse. It trades about 0.51 of its potential returns per unit of risk. Littelfuse is currently generating about -0.03 per unit of risk. If you would invest 13,597 in OSI Systems on August 31, 2024 and sell it today you would earn a total of 3,854 from holding OSI Systems or generate 28.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OSI Systems vs. Littelfuse
Performance |
| Timeline |
| OSI Systems |
| Littelfuse |
OSI Systems and Littelfuse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSI Systems and Littelfuse
The main advantage of trading using opposite OSI Systems and Littelfuse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSI Systems position performs unexpectedly, Littelfuse 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 Littelfuse will offset losses from the drop in Littelfuse's long position.| OSI Systems vs. Sanmina | OSI Systems vs. Benchmark Electronics | OSI Systems vs. Celestica | OSI Systems vs. CTS Corporation |
| Littelfuse vs. Plexus Corp | Littelfuse vs. Celestica | Littelfuse vs. Benchmark Electronics | Littelfuse vs. Flex |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |