Correlation Between AirAsia X and OSK Holdings
Can any of the company-specific risk be diversified away by investing in both AirAsia X 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 AirAsia X and OSK Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AirAsia X Bhd and OSK Holdings Bhd, you can compare the effects of market volatilities on AirAsia X 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 AirAsia X with a short position of OSK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AirAsia X and OSK Holdings.
Diversification Opportunities for AirAsia X and OSK Holdings
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AirAsia and OSK is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding AirAsia X 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 AirAsia X 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 AirAsia X 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 AirAsia X i.e., AirAsia X and OSK Holdings go up and down completely randomly.
Pair Corralation between AirAsia X and OSK Holdings
Assuming the 90 days trading horizon AirAsia X is expected to generate 19.28 times less return on investment than OSK Holdings. In addition to that, AirAsia X is 3.35 times more volatile than OSK Holdings Bhd. It trades about 0.01 of its total potential returns per unit of risk. OSK Holdings Bhd is currently generating about 0.7 per unit of volatility. If you would invest 156.00 in OSK Holdings Bhd on September 15, 2024 and sell it today you would earn a total of 18.00 from holding OSK Holdings Bhd or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AirAsia X Bhd vs. OSK Holdings Bhd
Performance |
| Timeline |
| AirAsia X Bhd |
| OSK Holdings Bhd |
AirAsia X and OSK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AirAsia X and OSK Holdings
The main advantage of trading using opposite AirAsia X and OSK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AirAsia X 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.| AirAsia X vs. Public Packages Holdings | AirAsia X vs. Binasat Communications Bhd | AirAsia X vs. Awanbiru Technology Bhd | AirAsia X vs. Sports Toto Berhad |
| OSK Holdings vs. Cloudpoint Technology Berhad | OSK Holdings vs. Kobay Tech Bhd | OSK Holdings vs. Cengild Medical Berhad | OSK Holdings vs. MClean Technologies 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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