Correlation Between ScanTech and OSI Systems
Can any of the company-specific risk be diversified away by investing in both ScanTech 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 ScanTech and OSI Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanTech AI Systems and OSI Systems, you can compare the effects of market volatilities on ScanTech 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 ScanTech with a short position of OSI Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanTech and OSI Systems.
Diversification Opportunities for ScanTech and OSI Systems
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ScanTech and OSI is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding ScanTech AI Systems and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems and ScanTech 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 ScanTech AI Systems 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 ScanTech i.e., ScanTech and OSI Systems go up and down completely randomly.
Pair Corralation between ScanTech and OSI Systems
Given the investment horizon of 90 days ScanTech AI Systems is expected to under-perform the OSI Systems. In addition to that, ScanTech is 2.21 times more volatile than OSI Systems. It trades about -0.02 of its total potential returns per unit of risk. OSI Systems is currently generating about -0.03 per unit of volatility. If you would invest 21,495 in OSI Systems on April 20, 2025 and sell it today you would lose (357.00) from holding OSI Systems or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ScanTech AI Systems vs. OSI Systems
Performance |
| Timeline |
| ScanTech AI Systems |
| OSI Systems |
ScanTech and OSI Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ScanTech and OSI Systems
The main advantage of trading using opposite ScanTech and OSI Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanTech 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.| ScanTech vs. Tenaris SA ADR | ScanTech vs. Integrated Drilling Equipment | ScanTech vs. Cabo Drilling Corp | ScanTech vs. Penn National Gaming |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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