Correlation Between Osia Hyper and N B

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

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

Diversification Opportunities for Osia Hyper and N B

-0.36

Correlation Coefficient

Osia Hyper  N B

Very good diversification

The 3 months correlation between Osia and NBIFIN is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Osia Hyper Retail and N B I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N B I and Osia Hyper 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 Osia Hyper Retail are associated (or correlated) with N B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N B I has no effect on the direction of Osia Hyper i.e., Osia Hyper and N B go up and down completely randomly.

Pair Corralation between Osia Hyper and N B

Assuming the 90 days trading horizon Osia Hyper is expected to generate 64.77 times less return on investment than N B. In addition to that, Osia Hyper is 1.01 times more volatile than N B I. It trades about 0.0 of its total potential returns per unit of risk. N B I is currently generating about 0.28 per unit of volatility. If you would invest  232,175  in N B I on September 5, 2024 and sell it today you would earn a total of  130,435  from holding N B I or generate 56.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Osia Hyper Retail  vs.  N B I

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 relatively invariable basic indicators, Osia Hyper is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

N B I

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in N B I are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, N B sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Osia Hyper and N B

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

The idea behind Osia Hyper Retail and N B I 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.