Correlation Between Via Optronics and OSI Systems
Can any of the company-specific risk be diversified away by investing in both Via Optronics and OSI Systems 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 Via Optronics and OSI Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Via Optronics Ag and OSI Systems, you can compare the effects of market volatilities on Via Optronics and OSI Systems 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 Via Optronics with a short position of OSI Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Via Optronics and OSI Systems.
Diversification Opportunities for Via Optronics and OSI Systems
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Via and OSI is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Via Optronics Ag and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems and Via Optronics 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 Via Optronics Ag are associated (or correlated) with OSI Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSI Systems has no effect on the direction of Via Optronics i.e., Via Optronics and OSI Systems go up and down completely randomly.
Pair Corralation between Via Optronics and OSI Systems
If you would invest 14,614 in OSI Systems on August 28, 2024 and sell it today you would earn a total of 2,285 from holding OSI Systems or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Via Optronics Ag vs. OSI Systems
Performance |
| Timeline |
| Via Optronics Ag |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| OSI Systems |
Via Optronics and OSI Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Via Optronics and OSI Systems
The main advantage of trading using opposite Via Optronics and OSI Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Via Optronics position performs unexpectedly, OSI Systems 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 OSI Systems will offset losses from the drop in OSI Systems' long position.| Via Optronics vs. Benchmark Electronics | Via Optronics vs. Bel Fuse A | Via Optronics vs. Methode Electronics | Via Optronics vs. Bel Fuse B |
| OSI Systems vs. Plexus Corp | OSI Systems vs. Jabil Circuit | OSI Systems vs. Sanmina | OSI Systems vs. Methode Electronics |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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