Correlation Between AMMB Holdings and Oakworth Capital

Can any of the company-specific risk be diversified away by investing in both AMMB Holdings and Oakworth Capital 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 AMMB Holdings and Oakworth Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for AMMB Holdings and Oakworth Capital

0.0

Correlation Coefficient

AMMB Holdings  Oakworth Capital

Pay attention - limited upside

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

Pair Corralation between AMMB Holdings and Oakworth Capital

If you would invest  3,150  in Oakworth Capital on December 20, 2024 and sell it today you would earn a total of  60.00  from holding Oakworth Capital or generate 1.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	75.0%
Values	Daily Returns

AMMB Holdings Berhad  vs.  Oakworth Capital

AMMB Holdings Berhad

Risk-Adjusted Performance

Very Weak

Over the last 90 days AMMB Holdings Berhad has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, AMMB Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Oakworth Capital

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Oakworth Capital are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward-looking signals, Oakworth Capital is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with AMMB Holdings and Oakworth Capital

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

The idea behind AMMB Holdings Berhad and Oakworth 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.