Correlation Between OSK Holdings and Hengyuan Refining
Can any of the company-specific risk be diversified away by investing in both OSK Holdings and Hengyuan Refining 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 Hengyuan Refining 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 Hengyuan Refining, you can compare the effects of market volatilities on OSK Holdings and Hengyuan Refining 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 Hengyuan Refining. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSK Holdings and Hengyuan Refining.
Diversification Opportunities for OSK Holdings and Hengyuan Refining
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OSK and Hengyuan is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding OSK Holdings Bhd and Hengyuan Refining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengyuan Refining 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 Hengyuan Refining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengyuan Refining has no effect on the direction of OSK Holdings i.e., OSK Holdings and Hengyuan Refining go up and down completely randomly.
Pair Corralation between OSK Holdings and Hengyuan Refining
Assuming the 90 days trading horizon OSK Holdings Bhd is expected to generate 0.33 times more return on investment than Hengyuan Refining. However, OSK Holdings Bhd is 3.02 times less risky than Hengyuan Refining. It trades about 0.25 of its potential returns per unit of risk. Hengyuan Refining is currently generating about -0.49 per unit of risk. If you would invest 157.00 in OSK Holdings Bhd on September 4, 2024 and sell it today you would earn a total of 5.00 from holding OSK Holdings Bhd or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
OSK Holdings Bhd vs. Hengyuan Refining
Performance |
| Timeline |
| OSK Holdings Bhd |
| Hengyuan Refining |
OSK Holdings and Hengyuan Refining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSK Holdings and Hengyuan Refining
The main advantage of trading using opposite OSK Holdings and Hengyuan Refining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSK Holdings position performs unexpectedly, Hengyuan Refining 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 Hengyuan Refining will offset losses from the drop in Hengyuan Refining'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 |
| Hengyuan Refining vs. K One Technology Bhd | Hengyuan Refining vs. Icon Offshore Bhd | Hengyuan Refining vs. Cosmos Technology International | Hengyuan Refining vs. Homeritz 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |