Correlation Between Rogers and OSI Systems

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

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

Diversification Opportunities for Rogers and OSI Systems

0.58

Correlation Coefficient

Rogers  OSI Systems

Very weak diversification

The 3 months correlation between Rogers and OSI is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Rogers and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems and Rogers 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 Rogers 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 Rogers i.e., Rogers and OSI Systems go up and down completely randomly.

Pair Corralation between Rogers and OSI Systems

Considering the 90-day investment horizon Rogers is expected to generate 30.71 times less return on investment than OSI Systems. In addition to that, Rogers is 1.13 times more volatile than OSI Systems. It trades about 0.0 of its total potential returns per unit of risk. OSI Systems is currently generating about 0.06 per unit of volatility. If you would invest  19,911  in OSI Systems on March 27, 2025 and sell it today you would earn a total of  1,512  from holding OSI Systems or generate 7.59% return on investment over 90 days.

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

Rogers  vs.  OSI Systems

Rogers

Risk-Adjusted Performance

Very Weak

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

OSI Systems

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in OSI Systems are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating forward indicators, OSI Systems may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Rogers and OSI Systems

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