Correlation Between Bina Darulaman and OSK Holdings
Can any of the company-specific risk be diversified away by investing in both Bina Darulaman 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 Bina Darulaman and OSK Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bina Darulaman Bhd and OSK Holdings Bhd, you can compare the effects of market volatilities on Bina Darulaman 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 Bina Darulaman with a short position of OSK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bina Darulaman and OSK Holdings.
Diversification Opportunities for Bina Darulaman and OSK Holdings
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bina and OSK is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bina Darulaman 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 Bina Darulaman 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 Bina Darulaman 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 Bina Darulaman i.e., Bina Darulaman and OSK Holdings go up and down completely randomly.
Pair Corralation between Bina Darulaman and OSK Holdings
Assuming the 90 days trading horizon Bina Darulaman is expected to generate 3.73 times less return on investment than OSK Holdings. In addition to that, Bina Darulaman is 2.0 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 0.11 per unit of volatility. 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 | Weak |
| Accuracy | 98.63% |
| Values | Daily Returns |
Bina Darulaman Bhd vs. OSK Holdings Bhd
Performance |
| Timeline |
| Bina Darulaman Bhd |
| OSK Holdings Bhd |
Bina Darulaman and OSK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bina Darulaman and OSK Holdings
The main advantage of trading using opposite Bina Darulaman and OSK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bina Darulaman 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.| Bina Darulaman vs. Malayan Banking Bhd | Bina Darulaman vs. Public Bank Bhd | Bina Darulaman vs. Petronas Chemicals Group | Bina Darulaman vs. Tenaga Nasional Bhd |
| OSK Holdings vs. Minetech Resources Bhd | OSK Holdings vs. Swift Haulage Bhd | OSK Holdings vs. Insas Bhd | OSK Holdings vs. Bina Darulaman 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |