Correlation Between Oshidori International and State Street

Can any of the company-specific risk be diversified away by investing in both Oshidori International and State Street 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 Oshidori International and State Street into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oshidori International Holdings and State Street Core, you can compare the effects of market volatilities on Oshidori International and State Street 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 Oshidori International with a short position of State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshidori International and State Street.

Diversification Opportunities for Oshidori International and State Street

0.0

Correlation Coefficient

Oshidori International  State Street

Pay attention - limited upside

The 3 months correlation between Oshidori and State is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding and State Street Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Core and Oshidori International 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 Oshidori International Holdings are associated (or correlated) with State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Core has no effect on the direction of Oshidori International i.e., Oshidori International and State Street go up and down completely randomly.

Pair Corralation between Oshidori International and State Street

If you would invest  6,819  in State Street Core on May 6, 2025 and sell it today you would earn a total of  896.00  from holding State Street Core or generate 13.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Oshidori International Holding  vs.  State Street Core

Oshidori International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oshidori International Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Oshidori International is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

State Street Core

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in State Street Core are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, State Street showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Oshidori International and State Street

The main advantage of trading using opposite Oshidori International and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshidori International position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.

The idea behind Oshidori International Holdings and State Street Core 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.