Correlation Between Inter Parfums and OSI Systems
Can any of the company-specific risk be diversified away by investing in both Inter Parfums 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 Inter Parfums and OSI Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Parfums and OSI Systems, you can compare the effects of market volatilities on Inter Parfums 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 Inter Parfums with a short position of OSI Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Parfums and OSI Systems.
Diversification Opportunities for Inter Parfums and OSI Systems
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inter and OSI is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Inter Parfums and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems and Inter Parfums 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 Inter Parfums 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 Inter Parfums i.e., Inter Parfums and OSI Systems go up and down completely randomly.
Pair Corralation between Inter Parfums and OSI Systems
Given the investment horizon of 90 days Inter Parfums is expected to generate 0.74 times more return on investment than OSI Systems. However, Inter Parfums is 1.35 times less risky than OSI Systems. It trades about 0.21 of its potential returns per unit of risk. OSI Systems is currently generating about 0.09 per unit of risk. If you would invest 10,445 in Inter Parfums on April 21, 2025 and sell it today you would earn a total of 2,505 from holding Inter Parfums or generate 23.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inter Parfums vs. OSI Systems
Performance |
| Timeline |
| Inter Parfums |
| OSI Systems |
Inter Parfums and OSI Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Parfums and OSI Systems
The main advantage of trading using opposite Inter Parfums and OSI Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Parfums 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.| Inter Parfums vs. J J Snack | Inter Parfums vs. John B Sanfilippo | Inter Parfums vs. Innospec | Inter Parfums vs. Independent Bank |
| OSI Systems vs. Universal Electronics | OSI Systems vs. Xiaomi Corp ADR | OSI Systems vs. Viomi Technology ADR | OSI Systems vs. Yatsen Holding |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |