Correlation Between Indofood Sukses and OSI Systems

Can any of the company-specific risk be diversified away by investing in both Indofood Sukses and OSI Systems 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 Indofood Sukses and OSI Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Indofood Sukses Makmur and OSI Systems, you can compare the effects of market volatilities on Indofood Sukses and OSI Systems 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 Indofood Sukses with a short position of OSI Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indofood Sukses and OSI Systems.

Diversification Opportunities for Indofood Sukses and OSI Systems

-0.3

Correlation Coefficient

Indofood Sukses  OSI Systems

Very good diversification

The 3 months correlation between Indofood and OSI is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Indofood Sukses Makmur and OSI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSI Systems and Indofood Sukses 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 Indofood Sukses Makmur are associated (or correlated) with OSI Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSI Systems has no effect on the direction of Indofood Sukses i.e., Indofood Sukses and OSI Systems go up and down completely randomly.

Pair Corralation between Indofood Sukses and OSI Systems

Assuming the 90 days horizon Indofood Sukses Makmur is expected to under-perform the OSI Systems. In addition to that, Indofood Sukses is 1.24 times more volatile than OSI Systems. It trades about -0.02 of its total potential returns per unit of risk. OSI Systems is currently generating about 0.06 per unit of volatility. If you would invest  23,624  in OSI Systems on September 14, 2025 and sell it today you would earn a total of  2,320  from holding OSI Systems or generate 9.82% return on investment over 90 days.

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

Indofood Sukses Makmur  vs.  OSI Systems

Indofood Sukses Makmur

Risk-Adjusted Performance

Weakest

Over the last 90 days Indofood Sukses Makmur has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong primary indicators, Indofood Sukses is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

OSI Systems

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in OSI Systems are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent forward indicators, OSI Systems may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Indofood Sukses and OSI Systems

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

The idea behind Indofood Sukses Makmur and OSI Systems 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.