Correlation Between Osia Hyper and BAG Films

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

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

Diversification Opportunities for Osia Hyper and BAG Films

0.16

Correlation Coefficient

Osia Hyper  BAG Films

Average diversification

The 3 months correlation between Osia and BAG is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Osia Hyper Retail and BAG Films and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAG Films and Osia Hyper 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 Osia Hyper Retail are associated (or correlated) with BAG Films. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAG Films has no effect on the direction of Osia Hyper i.e., Osia Hyper and BAG Films go up and down completely randomly.

Pair Corralation between Osia Hyper and BAG Films

Assuming the 90 days trading horizon Osia Hyper Retail is expected to generate 1.43 times more return on investment than BAG Films. However, Osia Hyper is 1.43 times more volatile than BAG Films and. It trades about 0.04 of its potential returns per unit of risk. BAG Films and is currently generating about -0.48 per unit of risk. If you would invest  3,012  in Osia Hyper Retail on October 22, 2024 and sell it today you would earn a total of  39.00  from holding Osia Hyper Retail or generate 1.29% return on investment over 90 days.

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

Osia Hyper Retail  vs.  BAG Films and

Osia Hyper Retail

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Osia Hyper Retail has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

BAG Films

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BAG Films and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak 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 Osia Hyper and BAG Films

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

The idea behind Osia Hyper Retail and BAG Films and 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.