Correlation Between Osia Hyper and Impex Ferro

Can any of the company-specific risk be diversified away by investing in both Osia Hyper and Impex Ferro 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 Impex Ferro 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 Impex Ferro Tech, you can compare the effects of market volatilities on Osia Hyper and Impex Ferro 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 Impex Ferro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osia Hyper and Impex Ferro.

Diversification Opportunities for Osia Hyper and Impex Ferro

0.64

Correlation Coefficient

Osia Hyper  Impex Ferro

Poor diversification

The 3 months correlation between Osia and Impex is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Osia Hyper Retail and Impex Ferro Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impex Ferro Tech 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 Impex Ferro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impex Ferro Tech has no effect on the direction of Osia Hyper i.e., Osia Hyper and Impex Ferro go up and down completely randomly.

Pair Corralation between Osia Hyper and Impex Ferro

Assuming the 90 days trading horizon Osia Hyper Retail is expected to under-perform the Impex Ferro. In addition to that, Osia Hyper is 1.05 times more volatile than Impex Ferro Tech. It trades about -0.03 of its total potential returns per unit of risk. Impex Ferro Tech is currently generating about 0.09 per unit of volatility. If you would invest  293.00  in Impex Ferro Tech on October 20, 2024 and sell it today you would earn a total of  12.00  from holding Impex Ferro Tech or generate 4.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.24%
Values	Daily Returns

Osia Hyper Retail  vs.  Impex Ferro Tech

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 unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Impex Ferro Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Impex Ferro Tech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Osia Hyper and Impex Ferro

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

The idea behind Osia Hyper Retail and Impex Ferro Tech 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.