Correlation Between AMMB Holdings and Icon Offshore
Can any of the company-specific risk be diversified away by investing in both AMMB Holdings and Icon Offshore 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 Icon Offshore 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 Icon Offshore Bhd, you can compare the effects of market volatilities on AMMB Holdings and Icon Offshore 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 Icon Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMMB Holdings and Icon Offshore.
Diversification Opportunities for AMMB Holdings and Icon Offshore
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMMB and Icon is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding AMMB Holdings Bhd and Icon Offshore Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Offshore 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 Icon Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Offshore Bhd has no effect on the direction of AMMB Holdings i.e., AMMB Holdings and Icon Offshore go up and down completely randomly.
Pair Corralation between AMMB Holdings and Icon Offshore
Assuming the 90 days trading horizon AMMB Holdings is expected to generate 2.28 times less return on investment than Icon Offshore. But when comparing it to its historical volatility, AMMB Holdings Bhd is 1.1 times less risky than Icon Offshore. It trades about 0.06 of its potential returns per unit of risk. Icon Offshore Bhd is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 99.00 in Icon Offshore Bhd on November 28, 2024 and sell it today you would earn a total of 3.00 from holding Icon Offshore Bhd or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMMB Holdings Bhd vs. Icon Offshore Bhd
Performance |
| Timeline |
| AMMB Holdings Bhd |
| Icon Offshore Bhd |
AMMB Holdings and Icon Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMMB Holdings and Icon Offshore
The main advantage of trading using opposite AMMB Holdings and Icon Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMMB Holdings position performs unexpectedly, Icon Offshore 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 Icon Offshore will offset losses from the drop in Icon Offshore's long position.| AMMB Holdings vs. CSC Steel Holdings | AMMB Holdings vs. Steel Hawk Berhad | AMMB Holdings vs. Coraza Integrated Technology | AMMB Holdings vs. Lysaght Galvanized Steel |
| Icon Offshore vs. Media Prima Bhd | Icon Offshore vs. Datasonic Group Bhd | Icon Offshore vs. Sports Toto Berhad | Icon Offshore vs. Lotte Chemical Titan |
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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