Correlation Between CommScope Holding and OSI Systems

Can any of the company-specific risk be diversified away by investing in both CommScope Holding 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 CommScope Holding and OSI Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CommScope Holding Co and OSI Systems, you can compare the effects of market volatilities on CommScope Holding 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 CommScope Holding with a short position of OSI Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of CommScope Holding and OSI Systems.

Diversification Opportunities for CommScope Holding and OSI Systems

0.46

Correlation Coefficient

CommScope Holding  OSI Systems

Very weak diversification

The 3 months correlation between CommScope and OSI is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CommScope Holding Co and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems and CommScope Holding 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 CommScope Holding Co 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 CommScope Holding i.e., CommScope Holding and OSI Systems go up and down completely randomly.

Pair Corralation between CommScope Holding and OSI Systems

Given the investment horizon of 90 days CommScope Holding Co is expected to generate 3.32 times more return on investment than OSI Systems. However, CommScope Holding is 3.32 times more volatile than OSI Systems. It trades about 0.14 of its potential returns per unit of risk. OSI Systems is currently generating about 0.08 per unit of risk. If you would invest  632.00  in CommScope Holding Co on September 17, 2025 and sell it today you would earn a total of  1,271  from holding CommScope Holding Co or generate 201.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

CommScope Holding Co  vs.  OSI Systems

CommScope Holding

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CommScope Holding Co are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal primary indicators, CommScope Holding displayed solid returns over the last few months and may actually be approaching a breakup point.

OSI Systems

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in OSI Systems are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent forward indicators, OSI Systems may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with CommScope Holding and OSI Systems

The main advantage of trading using opposite CommScope Holding and OSI Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CommScope Holding 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.

The idea behind CommScope Holding Co and OSI Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.