Correlation Between OSK Holdings and Omesti Bhd
Can any of the company-specific risk be diversified away by investing in both OSK Holdings and Omesti Bhd 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 OSK Holdings and Omesti Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSK Holdings Bhd and Omesti Bhd, you can compare the effects of market volatilities on OSK Holdings and Omesti Bhd 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 OSK Holdings with a short position of Omesti Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSK Holdings and Omesti Bhd.
Diversification Opportunities for OSK Holdings and Omesti Bhd
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OSK and Omesti is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding OSK Holdings Bhd and Omesti Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omesti Bhd and OSK Holdings 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 OSK Holdings Bhd are associated (or correlated) with Omesti Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omesti Bhd has no effect on the direction of OSK Holdings i.e., OSK Holdings and Omesti Bhd go up and down completely randomly.
Pair Corralation between OSK Holdings and Omesti Bhd
Assuming the 90 days trading horizon OSK Holdings is expected to generate 10.55 times less return on investment than Omesti Bhd. But when comparing it to its historical volatility, OSK Holdings Bhd is 8.61 times less risky than Omesti Bhd. It trades about 0.28 of its potential returns per unit of risk. Omesti Bhd is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 7.00 in Omesti Bhd on September 25, 2024 and sell it today you would earn a total of 8.00 from holding Omesti Bhd or generate 114.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
OSK Holdings Bhd vs. Omesti Bhd
Performance |
Timeline |
OSK Holdings Bhd |
Omesti Bhd |
OSK Holdings and Omesti Bhd Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OSK Holdings and Omesti Bhd
The main advantage of trading using opposite OSK Holdings and Omesti Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSK Holdings position performs unexpectedly, Omesti Bhd 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 Omesti Bhd will offset losses from the drop in Omesti Bhd's long position.OSK Holdings vs. Asian Pac Holdings | OSK Holdings vs. RHB Bank Bhd | OSK Holdings vs. ECS ICT Bhd | OSK Holdings vs. Silver Ridge Holdings |
Omesti Bhd vs. Malayan Banking Bhd | Omesti Bhd vs. Public Bank Bhd | Omesti Bhd vs. Petronas Chemicals Group | Omesti Bhd vs. Tenaga Nasional Bhd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |