Correlation Between OSI Systems and Wallbox NV
Can any of the company-specific risk be diversified away by investing in both OSI Systems and Wallbox NV 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 Wallbox NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSI Systems and Wallbox NV, you can compare the effects of market volatilities on OSI Systems and Wallbox NV 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 Wallbox NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSI Systems and Wallbox NV.
Diversification Opportunities for OSI Systems and Wallbox NV
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OSI and Wallbox is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and Wallbox NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wallbox NV 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 Wallbox NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wallbox NV has no effect on the direction of OSI Systems i.e., OSI Systems and Wallbox NV go up and down completely randomly.
Pair Corralation between OSI Systems and Wallbox NV
Given the investment horizon of 90 days OSI Systems is expected to generate 0.35 times more return on investment than Wallbox NV. However, OSI Systems is 2.83 times less risky than Wallbox NV. It trades about 0.54 of its potential returns per unit of risk. Wallbox NV is currently generating about -0.27 per unit of risk. If you would invest 13,356 in OSI Systems on August 30, 2024 and sell it today you would earn a total of 4,095 from holding OSI Systems or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OSI Systems vs. Wallbox NV
Performance |
| Timeline |
| OSI Systems |
| Wallbox NV |
OSI Systems and Wallbox NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSI Systems and Wallbox NV
The main advantage of trading using opposite OSI Systems and Wallbox NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSI Systems position performs unexpectedly, Wallbox NV 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 Wallbox NV will offset losses from the drop in Wallbox NV's long position.| OSI Systems vs. Sanmina | OSI Systems vs. Benchmark Electronics | OSI Systems vs. Methode Electronics | OSI Systems vs. Celestica |
| Wallbox NV vs. Kopin | Wallbox NV vs. Meta Materials | Wallbox NV vs. Corning Incorporated | Wallbox NV vs. KULR Technology Group |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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