Correlation Between OSI Systems and Zepp Health

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

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

Diversification Opportunities for OSI Systems and Zepp Health

-0.38

Correlation Coefficient

OSI Systems  Zepp Health

Very good diversification

The 3 months correlation between OSI and Zepp is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding OSI Systems and Zepp Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zepp Health 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 Zepp Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zepp Health Corp has no effect on the direction of OSI Systems i.e., OSI Systems and Zepp Health go up and down completely randomly.

Pair Corralation between OSI Systems and Zepp Health

Given the investment horizon of 90 days OSI Systems is expected to generate 1004.11 times less return on investment than Zepp Health. But when comparing it to its historical volatility, OSI Systems is 7.25 times less risky than Zepp Health. It trades about 0.0 of its potential returns per unit of risk. Zepp Health Corp is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  266.00  in Zepp Health Corp on May 8, 2025 and sell it today you would earn a total of  2,267  from holding Zepp Health Corp or generate 852.26% return on investment over 90 days.

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

OSI Systems  vs.  Zepp Health Corp

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 latest stock price uproar, may contribute to short-horizon losses for the private investors.

Zepp Health Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Zepp Health Corp are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Zepp Health reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OSI Systems and Zepp Health

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

The idea behind OSI Systems and Zepp Health Corp 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.