Correlation Between AMMB Holdings and OSK Holdings
Can any of the company-specific risk be diversified away by investing in both AMMB Holdings 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 AMMB Holdings and OSK Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMMB Holdings Bhd and OSK Holdings Bhd, you can compare the effects of market volatilities on AMMB Holdings 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 AMMB Holdings with a short position of OSK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMMB Holdings and OSK Holdings.
Diversification Opportunities for AMMB Holdings and OSK Holdings
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AMMB and OSK is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding AMMB Holdings Bhd 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 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 Bhd 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 AMMB Holdings i.e., AMMB Holdings and OSK Holdings go up and down completely randomly.
Pair Corralation between AMMB Holdings and OSK Holdings
Assuming the 90 days trading horizon AMMB Holdings is expected to generate 1.16 times less return on investment than OSK Holdings. But when comparing it to its historical volatility, AMMB Holdings Bhd is 1.25 times less risky than OSK Holdings. It trades about 0.12 of its potential returns per unit of risk. OSK Holdings Bhd is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 93.00 in OSK Holdings Bhd on September 4, 2024 and sell it today you would earn a total of 69.00 from holding OSK Holdings Bhd or generate 74.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
AMMB Holdings Bhd vs. OSK Holdings Bhd
Performance |
| Timeline |
| AMMB Holdings Bhd |
| OSK Holdings Bhd |
AMMB Holdings and OSK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMMB Holdings and OSK Holdings
The main advantage of trading using opposite AMMB Holdings and OSK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMMB Holdings 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.| AMMB Holdings vs. Rubberex M | AMMB Holdings vs. CPE Technology Berhad | AMMB Holdings vs. Sungei Bagan Rubber | AMMB Holdings vs. Icon Offshore Bhd |
| OSK Holdings vs. Minetech Resources Bhd | OSK Holdings vs. Swift Haulage Bhd | OSK Holdings vs. Insas Bhd | OSK Holdings vs. Bina Darulaman 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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