Correlation Between OSI Systems and MicroCloud Hologram

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

By analyzing existing cross correlation between OSI Systems and MicroCloud Hologram, you can compare the effects of market volatilities on OSI Systems and MicroCloud Hologram 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 MicroCloud Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSI Systems and MicroCloud Hologram.

Diversification Opportunities for OSI Systems and MicroCloud Hologram

0.03

Correlation Coefficient

OSI Systems  MicroCloud Hologram

Significant diversification

The 3 months correlation between OSI and MicroCloud is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and MicroCloud Hologram in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroCloud Hologram 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 MicroCloud Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroCloud Hologram has no effect on the direction of OSI Systems i.e., OSI Systems and MicroCloud Hologram go up and down completely randomly.

Pair Corralation between OSI Systems and MicroCloud Hologram

Given the investment horizon of 90 days OSI Systems is expected to generate 0.17 times more return on investment than MicroCloud Hologram. However, OSI Systems is 6.01 times less risky than MicroCloud Hologram. It trades about -0.01 of its potential returns per unit of risk. MicroCloud Hologram is currently generating about -0.01 per unit of risk. If you would invest  22,699  in OSI Systems on May 10, 2025 and sell it today you would lose (594.00) from holding OSI Systems or give up 2.62% of portfolio value over 90 days.

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

OSI Systems  vs.  MicroCloud Hologram

OSI Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days OSI Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, OSI Systems is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

MicroCloud Hologram

Risk-Adjusted Performance

Weakest

Over the last 90 days MicroCloud Hologram has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's essential indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with OSI Systems and MicroCloud Hologram

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

The idea behind OSI Systems and MicroCloud Hologram 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.