Correlation Between MicroCloud Hologram and OSI Systems

Can any of the company-specific risk be diversified away by investing in both MicroCloud Hologram 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 MicroCloud Hologram and OSI Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MicroCloud Hologram and OSI Systems, you can compare the effects of market volatilities on MicroCloud Hologram 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 MicroCloud Hologram with a short position of OSI Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of MicroCloud Hologram and OSI Systems.

Diversification Opportunities for MicroCloud Hologram and OSI Systems

-0.33

Correlation Coefficient

MicroCloud Hologram  OSI Systems

Very good diversification

The 3 months correlation between MicroCloud and OSI is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding MicroCloud Hologram and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems and MicroCloud Hologram 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 MicroCloud Hologram 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 MicroCloud Hologram i.e., MicroCloud Hologram and OSI Systems go up and down completely randomly.

Pair Corralation between MicroCloud Hologram and OSI Systems

Given the investment horizon of 90 days MicroCloud Hologram is expected to under-perform the OSI Systems. In addition to that, MicroCloud Hologram is 5.2 times more volatile than OSI Systems. It trades about -0.16 of its total potential returns per unit of risk. OSI Systems is currently generating about 0.19 per unit of volatility. If you would invest  14,173  in OSI Systems on September 2, 2024 and sell it today you would earn a total of  3,567  from holding OSI Systems or generate 25.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MicroCloud Hologram  vs.  OSI Systems

MicroCloud Hologram

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MicroCloud Hologram has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

OSI Systems

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in OSI Systems are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating forward indicators, OSI Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MicroCloud Hologram and OSI Systems

The main advantage of trading using opposite MicroCloud Hologram and OSI Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MicroCloud Hologram 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.

The idea behind MicroCloud Hologram and OSI Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.