Correlation Between Osia Hyper and State Bank

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

Diversification Opportunities for Osia Hyper and State Bank

-0.49

Correlation Coefficient

Osia Hyper  State Bank

Very good diversification

The 3 months correlation between Osia and State is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Osia Hyper Retail and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank 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 State Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Bank has no effect on the direction of Osia Hyper i.e., Osia Hyper and State Bank go up and down completely randomly.

Pair Corralation between Osia Hyper and State Bank

Assuming the 90 days trading horizon Osia Hyper Retail is expected to under-perform the State Bank. In addition to that, Osia Hyper is 1.8 times more volatile than State Bank of. It trades about -0.04 of its total potential returns per unit of risk. State Bank of is currently generating about 0.07 per unit of volatility. If you would invest  56,610  in State Bank of on September 28, 2024 and sell it today you would earn a total of  24,635  from holding State Bank of or generate 43.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.38%
Values	Daily Returns

Osia Hyper Retail  vs.  State Bank of

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

State Bank

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in State Bank of are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, State Bank is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Osia Hyper and State Bank

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

The idea behind Osia Hyper Retail and State Bank of 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.

Check out your portfolio center.

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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.