Correlation Between OSRAM LICHT and Plug Power
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By analyzing existing cross correlation between OSRAM LICHT N and Plug Power, you can compare the effects of market volatilities on OSRAM LICHT and Plug Power 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 OSRAM LICHT with a short position of Plug Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSRAM LICHT and Plug Power.
Diversification Opportunities for OSRAM LICHT and Plug Power
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OSRAM and Plug is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding OSRAM LICHT N and Plug Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plug Power and OSRAM LICHT 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 OSRAM LICHT N are associated (or correlated) with Plug Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plug Power has no effect on the direction of OSRAM LICHT i.e., OSRAM LICHT and Plug Power go up and down completely randomly.
Pair Corralation between OSRAM LICHT and Plug Power
Assuming the 90 days trading horizon OSRAM LICHT is expected to generate 42.91 times less return on investment than Plug Power. But when comparing it to its historical volatility, OSRAM LICHT N is 23.77 times less risky than Plug Power. It trades about 0.07 of its potential returns per unit of risk. Plug Power is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 231.00 in Plug Power on October 12, 2024 and sell it today you would earn a total of 29.00 from holding Plug Power or generate 12.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OSRAM LICHT N vs. Plug Power
Performance |
| Timeline |
| OSRAM LICHT N |
| Plug Power |
OSRAM LICHT and Plug Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSRAM LICHT and Plug Power
The main advantage of trading using opposite OSRAM LICHT and Plug Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSRAM LICHT position performs unexpectedly, Plug Power 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 Plug Power will offset losses from the drop in Plug Power's long position.| OSRAM LICHT vs. FIREWEED METALS P | OSRAM LICHT vs. Hitachi Construction Machinery | OSRAM LICHT vs. AGRICULTBK HADR25 YC | OSRAM LICHT vs. Tokyu Construction Co |
| Plug Power vs. MOBILE FACTORY INC | Plug Power vs. Geely Automobile Holdings | Plug Power vs. NXP Semiconductors NV | Plug Power vs. BE Semiconductor Industries |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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