Correlation Between OSK Holdings and Insas Bhd
Can any of the company-specific risk be diversified away by investing in both OSK Holdings and Insas Bhd 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 OSK Holdings and Insas Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSK Holdings Bhd and Insas Bhd, you can compare the effects of market volatilities on OSK Holdings and Insas Bhd 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 OSK Holdings with a short position of Insas Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSK Holdings and Insas Bhd.
Diversification Opportunities for OSK Holdings and Insas Bhd
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between OSK and Insas is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding OSK Holdings Bhd and Insas Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insas Bhd and OSK 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 OSK Holdings Bhd are associated (or correlated) with Insas Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insas Bhd has no effect on the direction of OSK Holdings i.e., OSK Holdings and Insas Bhd go up and down completely randomly.
Pair Corralation between OSK Holdings and Insas Bhd
Assuming the 90 days trading horizon OSK Holdings Bhd is expected to generate 0.75 times more return on investment than Insas Bhd. However, OSK Holdings Bhd is 1.34 times less risky than Insas Bhd. It trades about 0.11 of its potential returns per unit of risk. Insas Bhd is currently generating about 0.03 per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
OSK Holdings Bhd vs. Insas Bhd
Performance |
| Timeline |
| OSK Holdings Bhd |
| Insas Bhd |
OSK Holdings and Insas Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSK Holdings and Insas Bhd
The main advantage of trading using opposite OSK Holdings and Insas Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSK Holdings position performs unexpectedly, Insas Bhd 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 Insas Bhd will offset losses from the drop in Insas Bhd's long position.| OSK Holdings vs. Minetech Resources Bhd | OSK Holdings vs. Swift Haulage Bhd | OSK Holdings vs. Insas Bhd | OSK Holdings vs. Bina Darulaman Bhd |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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