Correlation Between Digimarc and OSI Systems
Can any of the company-specific risk be diversified away by investing in both Digimarc 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 Digimarc and OSI Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digimarc and OSI Systems, you can compare the effects of market volatilities on Digimarc 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 Digimarc with a short position of OSI Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digimarc and OSI Systems.
Diversification Opportunities for Digimarc and OSI Systems
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Digimarc and OSI is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Digimarc and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems and Digimarc 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 Digimarc 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 Digimarc i.e., Digimarc and OSI Systems go up and down completely randomly.
Pair Corralation between Digimarc and OSI Systems
Given the investment horizon of 90 days Digimarc is expected to under-perform the OSI Systems. But the stock apears to be less risky and, when comparing its historical volatility, Digimarc is 1.16 times less risky than OSI Systems. The stock trades about -0.18 of its potential returns per unit of risk. The OSI Systems is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 22,405 in OSI Systems on April 28, 2025 and sell it today you would earn a total of 203.00 from holding OSI Systems or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digimarc vs. OSI Systems
Performance |
| Timeline |
| Digimarc |
| OSI Systems |
Digimarc and OSI Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digimarc and OSI Systems
The main advantage of trading using opposite Digimarc and OSI Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digimarc 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.| Digimarc vs. CSP Inc | Digimarc vs. Digi International | Digimarc vs. Formula Systems 1985 | Digimarc vs. Grid Dynamics Holdings |
| OSI Systems vs. Sanmina | OSI Systems vs. Benchmark Electronics | OSI Systems vs. Methode Electronics | OSI Systems vs. Celestica |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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