Correlation Between Ocean Vantage and Malayan Banking
Can any of the company-specific risk be diversified away by investing in both Ocean Vantage and Malayan Banking 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 Ocean Vantage and Malayan Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Vantage Holdings and Malayan Banking Bhd, you can compare the effects of market volatilities on Ocean Vantage and Malayan Banking 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 Ocean Vantage with a short position of Malayan Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Vantage and Malayan Banking.
Diversification Opportunities for Ocean Vantage and Malayan Banking
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ocean and Malayan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Vantage Holdings and Malayan Banking Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malayan Banking Bhd and Ocean Vantage 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 Ocean Vantage Holdings are associated (or correlated) with Malayan Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malayan Banking Bhd has no effect on the direction of Ocean Vantage i.e., Ocean Vantage and Malayan Banking go up and down completely randomly.
Pair Corralation between Ocean Vantage and Malayan Banking
Assuming the 90 days trading horizon Ocean Vantage Holdings is expected to under-perform the Malayan Banking. In addition to that, Ocean Vantage is 4.47 times more volatile than Malayan Banking Bhd. It trades about -0.04 of its total potential returns per unit of risk. Malayan Banking Bhd is currently generating about 0.05 per unit of volatility. If you would invest 979.00 in Malayan Banking Bhd on September 1, 2024 and sell it today you would earn a total of 41.00 from holding Malayan Banking Bhd or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocean Vantage Holdings vs. Malayan Banking Bhd
Performance |
| Timeline |
| Ocean Vantage Holdings |
| Malayan Banking Bhd |
Ocean Vantage and Malayan Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Vantage and Malayan Banking
The main advantage of trading using opposite Ocean Vantage and Malayan Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Vantage position performs unexpectedly, Malayan Banking 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 Malayan Banking will offset losses from the drop in Malayan Banking's long position.| Ocean Vantage vs. K One Technology Bhd | Ocean Vantage vs. Kawan Food Bhd | Ocean Vantage vs. Greatech Technology Bhd | Ocean Vantage vs. PIE Industrial Bhd |
| Malayan Banking vs. Public Bank Bhd | Malayan Banking vs. Hong Leong Bank | Malayan Banking vs. RHB Bank 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.
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