Correlation Between Ostin Technology and EMagin
Can any of the company-specific risk be diversified away by investing in both Ostin Technology and EMagin 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 Ostin Technology and EMagin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ostin Technology Group and EMagin, you can compare the effects of market volatilities on Ostin Technology and EMagin 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 Ostin Technology with a short position of EMagin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ostin Technology and EMagin.
Diversification Opportunities for Ostin Technology and EMagin
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ostin and EMagin is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ostin Technology Group and EMagin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMagin and Ostin Technology 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 Ostin Technology Group are associated (or correlated) with EMagin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMagin has no effect on the direction of Ostin Technology i.e., Ostin Technology and EMagin go up and down completely randomly.
Pair Corralation between Ostin Technology and EMagin
Considering the 90-day investment horizon Ostin Technology Group is expected to under-perform the EMagin. In addition to that, Ostin Technology is 1.57 times more volatile than EMagin. It trades about -0.01 of its total potential returns per unit of risk. EMagin is currently generating about 0.15 per unit of volatility. If you would invest 82.00 in EMagin on September 4, 2024 and sell it today you would earn a total of 118.00 from holding EMagin or generate 143.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 30.71% |
| Values | Daily Returns |
Ostin Technology Group vs. EMagin
Performance |
| Timeline |
| Ostin Technology |
| EMagin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ostin Technology and EMagin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ostin Technology and EMagin
The main advantage of trading using opposite Ostin Technology and EMagin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ostin Technology position performs unexpectedly, EMagin 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 EMagin will offset losses from the drop in EMagin's long position.| Ostin Technology vs. Sanmina | Ostin Technology vs. Plexus Corp | Ostin Technology vs. Benchmark Electronics | Ostin Technology vs. Integrated Media Technology |
| EMagin vs. KULR Technology Group | EMagin vs. Ouster Inc | EMagin vs. LightPath Technologies | EMagin vs. Daktronics |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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