Correlation Between Omesti Bhd and Teo Seng

Can any of the company-specific risk be diversified away by investing in both Omesti Bhd and Teo Seng 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 Omesti Bhd and Teo Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Omesti Bhd and Teo Seng Capital, you can compare the effects of market volatilities on Omesti Bhd and Teo Seng 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 Omesti Bhd with a short position of Teo Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omesti Bhd and Teo Seng.

Diversification Opportunities for Omesti Bhd and Teo Seng

0.0

Correlation Coefficient

Omesti Bhd  Teo Seng

Pay attention - limited upside

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

Pair Corralation between Omesti Bhd and Teo Seng

If you would invest  35.00  in Teo Seng Capital on October 19, 2024 and sell it today you would earn a total of  65.00  from holding Teo Seng Capital or generate 185.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.21%
Values	Daily Returns

Omesti Bhd  vs.  Teo Seng Capital

Omesti Bhd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Omesti Bhd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Omesti Bhd is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Teo Seng Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Teo Seng Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Omesti Bhd and Teo Seng

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

The idea behind Omesti Bhd and Teo Seng Capital 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..