Correlation Between Cengild Medical and OSK Holdings
Can any of the company-specific risk be diversified away by investing in both Cengild Medical and OSK Holdings 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 Cengild Medical and OSK Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cengild Medical Berhad and OSK Holdings Bhd, you can compare the effects of market volatilities on Cengild Medical and OSK Holdings 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 Cengild Medical with a short position of OSK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cengild Medical and OSK Holdings.
Diversification Opportunities for Cengild Medical and OSK Holdings
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cengild and OSK is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cengild Medical Berhad and OSK Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSK Holdings Bhd and Cengild Medical 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 Cengild Medical Berhad are associated (or correlated) with OSK Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSK Holdings Bhd has no effect on the direction of Cengild Medical i.e., Cengild Medical and OSK Holdings go up and down completely randomly.
Pair Corralation between Cengild Medical and OSK Holdings
Assuming the 90 days trading horizon Cengild Medical Berhad is expected to under-perform the OSK Holdings. In addition to that, Cengild Medical is 1.53 times more volatile than OSK Holdings Bhd. It trades about -0.01 of its total potential returns per unit of risk. OSK Holdings Bhd is currently generating about 0.1 per unit of volatility. If you would invest 118.00 in OSK Holdings Bhd on September 15, 2024 and sell it today you would earn a total of 56.00 from holding OSK Holdings Bhd or generate 47.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Cengild Medical Berhad vs. OSK Holdings Bhd
Performance |
| Timeline |
| Cengild Medical Berhad |
| OSK Holdings Bhd |
Cengild Medical and OSK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cengild Medical and OSK Holdings
The main advantage of trading using opposite Cengild Medical and OSK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cengild Medical position performs unexpectedly, OSK Holdings 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 OSK Holdings will offset losses from the drop in OSK Holdings' long position.| Cengild Medical vs. Duopharma Biotech Bhd | Cengild Medical vs. BP Plastics Holding | Cengild Medical vs. Resintech Bhd | Cengild Medical vs. Eversafe Rubber Bhd |
| OSK Holdings vs. Cloudpoint Technology Berhad | OSK Holdings vs. Kobay Tech Bhd | OSK Holdings vs. Cengild Medical Berhad | OSK Holdings vs. MClean Technologies 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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