Correlation Between OSI Systems and Maris Tech
Can any of the company-specific risk be diversified away by investing in both OSI Systems and Maris Tech 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 Maris Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSI Systems and Maris Tech, you can compare the effects of market volatilities on OSI Systems and Maris Tech 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 Maris Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSI Systems and Maris Tech.
Diversification Opportunities for OSI Systems and Maris Tech
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between OSI and Maris is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and Maris Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maris Tech 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 Maris Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maris Tech has no effect on the direction of OSI Systems i.e., OSI Systems and Maris Tech go up and down completely randomly.
Pair Corralation between OSI Systems and Maris Tech
Given the investment horizon of 90 days OSI Systems is expected to generate 0.38 times more return on investment than Maris Tech. However, OSI Systems is 2.64 times less risky than Maris Tech. It trades about 0.67 of its potential returns per unit of risk. Maris Tech is currently generating about 0.14 per unit of risk. If you would invest 13,221 in OSI Systems on September 1, 2024 and sell it today you would earn a total of 4,519 from holding OSI Systems or generate 34.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OSI Systems vs. Maris Tech
Performance |
| Timeline |
| OSI Systems |
| Maris Tech |
OSI Systems and Maris Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSI Systems and Maris Tech
The main advantage of trading using opposite OSI Systems and Maris Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSI Systems position performs unexpectedly, Maris Tech 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 Maris Tech will offset losses from the drop in Maris Tech's long position.| OSI Systems vs. Sanmina | OSI Systems vs. Benchmark Electronics | OSI Systems vs. Methode Electronics | OSI Systems vs. Celestica |
| Maris Tech vs. Methode Electronics | Maris Tech vs. LightPath Technologies | Maris Tech vs. Interlink Electronics | Maris Tech vs. SigmaTron International |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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