Correlation Between OSI Systems and Neonode
Can any of the company-specific risk be diversified away by investing in both OSI Systems and Neonode 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 Neonode into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSI Systems and Neonode, you can compare the effects of market volatilities on OSI Systems and Neonode 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 Neonode. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSI Systems and Neonode.
Diversification Opportunities for OSI Systems and Neonode
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OSI and Neonode is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and Neonode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neonode 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 Neonode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neonode has no effect on the direction of OSI Systems i.e., OSI Systems and Neonode go up and down completely randomly.
Pair Corralation between OSI Systems and Neonode
Given the investment horizon of 90 days OSI Systems is expected to generate 1.3 times more return on investment than Neonode. However, OSI Systems is 1.3 times more volatile than Neonode. It trades about 0.26 of its potential returns per unit of risk. Neonode is currently generating about -0.16 per unit of risk. If you would invest 16,402 in OSI Systems on November 5, 2024 and sell it today you would earn a total of 3,242 from holding OSI Systems or generate 19.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OSI Systems vs. Neonode
Performance |
| Timeline |
| OSI Systems |
| Neonode |
OSI Systems and Neonode Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSI Systems and Neonode
The main advantage of trading using opposite OSI Systems and Neonode positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSI Systems position performs unexpectedly, Neonode 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 Neonode will offset losses from the drop in Neonode's long position.| OSI Systems vs. Sanmina | OSI Systems vs. Benchmark Electronics | OSI Systems vs. Methode Electronics | OSI Systems vs. Celestica |
| Neonode vs. LightPath Technologies | Neonode vs. Methode Electronics | Neonode vs. OSI Systems | Neonode vs. Plexus Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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