Correlation Between Avnet and OSI Systems
Can any of the company-specific risk be diversified away by investing in both Avnet 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 Avnet and OSI Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avnet Inc and OSI Systems, you can compare the effects of market volatilities on Avnet 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 Avnet with a short position of OSI Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avnet and OSI Systems.
Diversification Opportunities for Avnet and OSI Systems
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Avnet and OSI is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Avnet Inc and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems and Avnet 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 Avnet Inc 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 Avnet i.e., Avnet and OSI Systems go up and down completely randomly.
Pair Corralation between Avnet and OSI Systems
Considering the 90-day investment horizon Avnet Inc is expected to under-perform the OSI Systems. But the stock apears to be less risky and, when comparing its historical volatility, Avnet Inc is 2.59 times less risky than OSI Systems. The stock trades about -0.55 of its potential returns per unit of risk. The OSI Systems is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 25,410 in OSI Systems on August 19, 2025 and sell it today you would earn a total of 1,293 from holding OSI Systems or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avnet Inc vs. OSI Systems
Performance |
| Timeline |
| Avnet Inc |
| OSI Systems |
Avnet and OSI Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avnet and OSI Systems
The main advantage of trading using opposite Avnet and OSI Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avnet 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.| Avnet vs. Insight Enterprises | Avnet vs. Plexus Corp | Avnet vs. Science Applications International | Avnet vs. CommScope Holding Co |
| OSI Systems vs. Itron Inc | OSI Systems vs. Novanta | OSI Systems vs. Sensata Technologies Holding | OSI Systems vs. Vicor |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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