Correlation Between OSK Holdings and Crescendo Bhd
Can any of the company-specific risk be diversified away by investing in both OSK Holdings and Crescendo 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 Crescendo 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 Crescendo Bhd, you can compare the effects of market volatilities on OSK Holdings and Crescendo 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 Crescendo Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSK Holdings and Crescendo Bhd.
Diversification Opportunities for OSK Holdings and Crescendo Bhd
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OSK and Crescendo is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding OSK Holdings Bhd and Crescendo Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescendo 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 Crescendo Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescendo Bhd has no effect on the direction of OSK Holdings i.e., OSK Holdings and Crescendo Bhd go up and down completely randomly.
Pair Corralation between OSK Holdings and Crescendo Bhd
Assuming the 90 days trading horizon OSK Holdings Bhd is expected to generate 0.76 times more return on investment than Crescendo Bhd. However, OSK Holdings Bhd is 1.32 times less risky than Crescendo Bhd. It trades about -0.1 of its potential returns per unit of risk. Crescendo Bhd is currently generating about -0.16 per unit of risk. If you would invest 174.00 in OSK Holdings Bhd on October 20, 2024 and sell it today you would lose (5.00) from holding OSK Holdings Bhd or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OSK Holdings Bhd vs. Crescendo Bhd
Performance |
| Timeline |
| OSK Holdings Bhd |
| Crescendo Bhd |
OSK Holdings and Crescendo Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSK Holdings and Crescendo Bhd
The main advantage of trading using opposite OSK Holdings and Crescendo Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSK Holdings position performs unexpectedly, Crescendo 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 Crescendo Bhd will offset losses from the drop in Crescendo Bhd's long position.| OSK Holdings vs. Sapura Energy Bhd | OSK Holdings vs. Genetec Technology Bhd | OSK Holdings vs. Supermax Bhd | OSK Holdings vs. MSCM Holdings Bhd |
| Crescendo Bhd vs. Malayan Banking Bhd | Crescendo Bhd vs. Petronas Chemicals Group | Crescendo Bhd vs. FARM FRESH BERHAD | Crescendo Bhd vs. Oriental Food Industries |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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