Correlation Between OSI Systems and Interlink Electronics
Can any of the company-specific risk be diversified away by investing in both OSI Systems and Interlink Electronics 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 Interlink Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSI Systems and Interlink Electronics, you can compare the effects of market volatilities on OSI Systems and Interlink Electronics 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 Interlink Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSI Systems and Interlink Electronics.
Diversification Opportunities for OSI Systems and Interlink Electronics
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between OSI and Interlink is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and Interlink Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Electronics 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 Interlink Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Electronics has no effect on the direction of OSI Systems i.e., OSI Systems and Interlink Electronics go up and down completely randomly.
Pair Corralation between OSI Systems and Interlink Electronics
Given the investment horizon of 90 days OSI Systems is expected to generate 0.5 times more return on investment than Interlink Electronics. However, OSI Systems is 1.98 times less risky than Interlink Electronics. It trades about 0.53 of its potential returns per unit of risk. Interlink Electronics is currently generating about -0.19 per unit of risk. If you would invest 13,141 in OSI Systems on August 27, 2024 and sell it today you would earn a total of 3,758 from holding OSI Systems or generate 28.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OSI Systems vs. Interlink Electronics
Performance |
| Timeline |
| OSI Systems |
| Interlink Electronics |
OSI Systems and Interlink Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSI Systems and Interlink Electronics
The main advantage of trading using opposite OSI Systems and Interlink Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSI Systems position performs unexpectedly, Interlink Electronics 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 Interlink Electronics will offset losses from the drop in Interlink Electronics' long position.| OSI Systems vs. Plexus Corp | OSI Systems vs. Jabil Circuit | OSI Systems vs. Sanmina | OSI Systems vs. Methode Electronics |
| Interlink Electronics vs. Methode Electronics | Interlink Electronics vs. Bel Fuse A | Interlink Electronics vs. CTS Corporation | Interlink Electronics vs. MicroCloud Hologram |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |