Correlation Between OSRAM LICHT and FUTURE GAMING

Can any of the company-specific risk be diversified away by investing in both OSRAM LICHT and FUTURE GAMING 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 OSRAM LICHT and FUTURE GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OSRAM LICHT N and FUTURE GAMING GRP, you can compare the effects of market volatilities on OSRAM LICHT and FUTURE GAMING 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 OSRAM LICHT with a short position of FUTURE GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSRAM LICHT and FUTURE GAMING.

Diversification Opportunities for OSRAM LICHT and FUTURE GAMING

-0.26

Correlation Coefficient

OSRAM LICHT  FUTURE GAMING

Very good diversification

The 3 months correlation between OSRAM and FUTURE is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding OSRAM LICHT N and FUTURE GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURE GAMING GRP and OSRAM LICHT 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 OSRAM LICHT N are associated (or correlated) with FUTURE GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURE GAMING GRP has no effect on the direction of OSRAM LICHT i.e., OSRAM LICHT and FUTURE GAMING go up and down completely randomly.

Pair Corralation between OSRAM LICHT and FUTURE GAMING

Assuming the 90 days trading horizon OSRAM LICHT is expected to generate 7.39 times less return on investment than FUTURE GAMING. But when comparing it to its historical volatility, OSRAM LICHT N is 14.9 times less risky than FUTURE GAMING. It trades about 0.09 of its potential returns per unit of risk. FUTURE GAMING GRP is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  44.00  in FUTURE GAMING GRP on May 14, 2025 and sell it today you would earn a total of  3.00  from holding FUTURE GAMING GRP or generate 6.82% return on investment over 90 days.

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

OSRAM LICHT N  vs.  FUTURE GAMING GRP

OSRAM LICHT N

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in OSRAM LICHT N are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, OSRAM LICHT is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

FUTURE GAMING GRP

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in FUTURE GAMING GRP are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FUTURE GAMING may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with OSRAM LICHT and FUTURE GAMING

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

The idea behind OSRAM LICHT N and FUTURE GAMING GRP 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 CEOs Directory module to screen CEOs from public companies around the world.