Correlation Between OSI Systems and Amphenol
Can any of the company-specific risk be diversified away by investing in both OSI Systems and Amphenol 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 OSI Systems and Amphenol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSI Systems and Amphenol, you can compare the effects of market volatilities on OSI Systems and Amphenol 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 OSI Systems with a short position of Amphenol. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSI Systems and Amphenol.
Diversification Opportunities for OSI Systems and Amphenol
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OSI and Amphenol is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and Amphenol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphenol and OSI Systems 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 OSI Systems are associated (or correlated) with Amphenol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphenol has no effect on the direction of OSI Systems i.e., OSI Systems and Amphenol go up and down completely randomly.
Pair Corralation between OSI Systems and Amphenol
Given the investment horizon of 90 days OSI Systems is expected to generate 3.63 times less return on investment than Amphenol. In addition to that, OSI Systems is 1.57 times more volatile than Amphenol. It trades about 0.04 of its total potential returns per unit of risk. Amphenol is currently generating about 0.24 per unit of volatility. If you would invest 9,320 in Amphenol on June 6, 2025 and sell it today you would earn a total of 1,955 from holding Amphenol or generate 20.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OSI Systems vs. Amphenol
Performance |
| Timeline |
| OSI Systems |
| Amphenol |
OSI Systems and Amphenol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSI Systems and Amphenol
The main advantage of trading using opposite OSI Systems and Amphenol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSI Systems position performs unexpectedly, Amphenol 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 Amphenol will offset losses from the drop in Amphenol's long position.| OSI Systems vs. Mobilicom Limited American | OSI Systems vs. Sonim Technologies | OSI Systems vs. PowerFleet, | OSI Systems vs. Moving iMage Technologies |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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