Correlation Between United States and Ossen Innovation

Can any of the company-specific risk be diversified away by investing in both United States and Ossen Innovation 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 United States and Ossen Innovation into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between United States Steel and Ossen Innovation Co, you can compare the effects of market volatilities on United States and Ossen Innovation 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 United States with a short position of Ossen Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Ossen Innovation.

Diversification Opportunities for United States and Ossen Innovation

0.0

Correlation Coefficient

United States  Ossen Innovation

Pay attention - limited upside

The 3 months correlation between United and Ossen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and Ossen Innovation Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossen Innovation and United States 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 United States Steel are associated (or correlated) with Ossen Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossen Innovation has no effect on the direction of United States i.e., United States and Ossen Innovation go up and down completely randomly.

Pair Corralation between United States and Ossen Innovation

If you would invest  3,887  in United States Steel on January 17, 2024 and sell it today you would earn a total of  195.00  from holding United States Steel or generate 5.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

United States Steel  vs.  Ossen Innovation Co

United States Steel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days United States Steel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Ossen Innovation

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ossen Innovation Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Ossen Innovation is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with United States and Ossen Innovation

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

The idea behind United States Steel and Ossen Innovation Co 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.