Correlation Between ZF Commercial and Osia Hyper

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

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

Diversification Opportunities for ZF Commercial and Osia Hyper

0.59

Correlation Coefficient

ZF Commercial  Osia Hyper

Very weak diversification

The 3 months correlation between ZFCVINDIA and Osia is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ZF Commercial Vehicle and Osia Hyper Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osia Hyper Retail and ZF Commercial 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 ZF Commercial Vehicle are associated (or correlated) with Osia Hyper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osia Hyper Retail has no effect on the direction of ZF Commercial i.e., ZF Commercial and Osia Hyper go up and down completely randomly.

Pair Corralation between ZF Commercial and Osia Hyper

Assuming the 90 days trading horizon ZF Commercial Vehicle is expected to generate 0.51 times more return on investment than Osia Hyper. However, ZF Commercial Vehicle is 1.97 times less risky than Osia Hyper. It trades about -0.22 of its potential returns per unit of risk. Osia Hyper Retail is currently generating about -0.35 per unit of risk. If you would invest  1,200,635  in ZF Commercial Vehicle on October 11, 2024 and sell it today you would lose (55,210) from holding ZF Commercial Vehicle or give up 4.6% of portfolio value over 90 days.

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

ZF Commercial Vehicle  vs.  Osia Hyper Retail

ZF Commercial Vehicle

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZF Commercial Vehicle has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 uncertain 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.

Pair Trading with ZF Commercial and Osia Hyper

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

The idea behind ZF Commercial Vehicle and Osia Hyper Retail 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.