Correlation Between Osia Hyper and MRF

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

Diversification Opportunities for Osia Hyper and MRF

0.75

Correlation Coefficient

Osia Hyper  MRF

Poor diversification

The 3 months correlation between Osia and MRF is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Osia Hyper Retail and MRF Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRF Limited 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 MRF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRF Limited has no effect on the direction of Osia Hyper i.e., Osia Hyper and MRF go up and down completely randomly.

Pair Corralation between Osia Hyper and MRF

Assuming the 90 days trading horizon Osia Hyper Retail is expected to under-perform the MRF. In addition to that, Osia Hyper is 2.65 times more volatile than MRF Limited. It trades about -0.03 of its total potential returns per unit of risk. MRF Limited is currently generating about 0.07 per unit of volatility. If you would invest  12,333,000  in MRF Limited on September 2, 2024 and sell it today you would earn a total of  192,100  from holding MRF Limited or generate 1.56% return on investment over 90 days.

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

Osia Hyper Retail  vs.  MRF Limited

Osia Hyper Retail

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Osia Hyper Retail are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Osia Hyper is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

MRF Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MRF Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental 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 MRF

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

The idea behind Osia Hyper Retail and MRF Limited 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.