Correlation Between SigmaTron International and Ouster
Can any of the company-specific risk be diversified away by investing in both SigmaTron International and Ouster 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 SigmaTron International and Ouster into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SigmaTron International and Ouster Inc, you can compare the effects of market volatilities on SigmaTron International and Ouster 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 SigmaTron International with a short position of Ouster. Check out your portfolio center. Please also check ongoing floating volatility patterns of SigmaTron International and Ouster.
Diversification Opportunities for SigmaTron International and Ouster
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SigmaTron and Ouster is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding SigmaTron International and Ouster Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ouster Inc and SigmaTron International 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 SigmaTron International are associated (or correlated) with Ouster. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ouster Inc has no effect on the direction of SigmaTron International i.e., SigmaTron International and Ouster go up and down completely randomly.
Pair Corralation between SigmaTron International and Ouster
Given the investment horizon of 90 days SigmaTron International is expected to generate 8.37 times less return on investment than Ouster. But when comparing it to its historical volatility, SigmaTron International is 1.25 times less risky than Ouster. It trades about 0.0 of its potential returns per unit of risk. Ouster Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,400 in Ouster Inc on August 24, 2024 and sell it today you would lose (503.00) from holding Ouster Inc or give up 35.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SigmaTron International vs. Ouster Inc
Performance |
| Timeline |
| SigmaTron International |
| Ouster Inc |
SigmaTron International and Ouster Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SigmaTron International and Ouster
The main advantage of trading using opposite SigmaTron International and Ouster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SigmaTron International position performs unexpectedly, Ouster 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 Ouster will offset losses from the drop in Ouster's long position.| SigmaTron International vs. Integrated Media Technology | SigmaTron International vs. Data IO | SigmaTron International vs. Research Frontiers Incorporated | SigmaTron International vs. Maris Tech |
| Ouster vs. KULR Technology Group | Ouster vs. LightPath Technologies | Ouster vs. Daktronics | Ouster vs. Kopin |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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