Correlation Between OSI Systems and Progressive Corp
Can any of the company-specific risk be diversified away by investing in both OSI Systems and Progressive Corp 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 Progressive Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSI Systems and Progressive Corp, you can compare the effects of market volatilities on OSI Systems and Progressive Corp 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 Progressive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSI Systems and Progressive Corp.
Diversification Opportunities for OSI Systems and Progressive Corp
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OSI and Progressive is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and Progressive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progressive Corp 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 Progressive Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progressive Corp has no effect on the direction of OSI Systems i.e., OSI Systems and Progressive Corp go up and down completely randomly.
Pair Corralation between OSI Systems and Progressive Corp
Given the investment horizon of 90 days OSI Systems is expected to generate 2.09 times more return on investment than Progressive Corp. However, OSI Systems is 2.09 times more volatile than Progressive Corp. It trades about 0.1 of its potential returns per unit of risk. Progressive Corp is currently generating about -0.08 per unit of risk. If you would invest 23,005 in OSI Systems on August 29, 2025 and sell it today you would earn a total of 4,151 from holding OSI Systems or generate 18.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OSI Systems vs. Progressive Corp
Performance |
| Timeline |
| OSI Systems |
| Progressive Corp |
OSI Systems and Progressive Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSI Systems and Progressive Corp
The main advantage of trading using opposite OSI Systems and Progressive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSI Systems position performs unexpectedly, Progressive Corp 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 Progressive Corp will offset losses from the drop in Progressive Corp's long position.| OSI Systems vs. White Mountains Insurance | OSI Systems vs. City Office REIT | OSI Systems vs. Net Lease Office | OSI Systems vs. Dream Office Real |
| Progressive Corp vs. NorthPoint Communications Group | Progressive Corp vs. Forum Mobile | Progressive Corp vs. Scandinavian Tobacco Group | Progressive Corp vs. SBM Offshore NV |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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