Correlation Between Medplus Health and Osia Hyper

Can any of the company-specific risk be diversified away by investing in both Medplus Health and Osia Hyper 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 Medplus Health and Osia Hyper into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Medplus Health Services and Osia Hyper Retail, you can compare the effects of market volatilities on Medplus Health and Osia Hyper 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 Medplus Health with a short position of Osia Hyper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medplus Health and Osia Hyper.

Diversification Opportunities for Medplus Health and Osia Hyper

-0.46

Correlation Coefficient

Medplus Health  Osia Hyper

Very good diversification

The 3 months correlation between Medplus and Osia is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Medplus Health Services and Osia Hyper Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osia Hyper Retail and Medplus Health 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 Medplus Health Services are associated (or correlated) with Osia Hyper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osia Hyper Retail has no effect on the direction of Medplus Health i.e., Medplus Health and Osia Hyper go up and down completely randomly.

Pair Corralation between Medplus Health and Osia Hyper

Assuming the 90 days trading horizon Medplus Health is expected to generate 1.62 times less return on investment than Osia Hyper. But when comparing it to its historical volatility, Medplus Health Services is 1.75 times less risky than Osia Hyper. It trades about 0.12 of its potential returns per unit of risk. Osia Hyper Retail is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,480  in Osia Hyper Retail on September 12, 2024 and sell it today you would earn a total of  920.00  from holding Osia Hyper Retail or generate 37.1% return on investment over 90 days.

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

Medplus Health Services  vs.  Osia Hyper Retail

Medplus Health Services

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Medplus Health Services are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Medplus Health unveiled solid returns over the last few months and may actually be approaching a breakup point.

Osia Hyper Retail

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Osia Hyper Retail has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Medplus Health and Osia Hyper

The main advantage of trading using opposite Medplus Health and Osia Hyper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medplus Health position performs unexpectedly, Osia Hyper 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 Osia Hyper will offset losses from the drop in Osia Hyper's long position.

The idea behind Medplus Health Services and Osia Hyper Retail 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.