Correlation Between Apex Healthcare and OSK Holdings
Can any of the company-specific risk be diversified away by investing in both Apex Healthcare 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 Apex Healthcare and OSK Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apex Healthcare Bhd and OSK Holdings Bhd, you can compare the effects of market volatilities on Apex Healthcare 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 Apex Healthcare with a short position of OSK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Healthcare and OSK Holdings.
Diversification Opportunities for Apex Healthcare and OSK Holdings
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apex and OSK is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Apex Healthcare 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 Apex Healthcare 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 Apex Healthcare 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 Apex Healthcare i.e., Apex Healthcare and OSK Holdings go up and down completely randomly.
Pair Corralation between Apex Healthcare and OSK Holdings
Assuming the 90 days trading horizon Apex Healthcare Bhd is expected to under-perform the OSK Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Apex Healthcare Bhd is 1.42 times less risky than OSK Holdings. The stock trades about -0.17 of its potential returns per unit of risk. The OSK Holdings Bhd is currently generating about -0.1 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Healthcare Bhd vs. OSK Holdings Bhd
Performance |
| Timeline |
| Apex Healthcare Bhd |
| OSK Holdings Bhd |
Apex Healthcare and OSK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Healthcare and OSK Holdings
The main advantage of trading using opposite Apex Healthcare and OSK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Healthcare 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.| Apex Healthcare vs. Duopharma Biotech Bhd | Apex Healthcare vs. MSCM Holdings Bhd | Apex Healthcare vs. Uwc Bhd | Apex Healthcare vs. FARM FRESH BERHAD |
| OSK Holdings vs. Sapura Energy Bhd | OSK Holdings vs. Genetec Technology Bhd | OSK Holdings vs. Supermax Bhd | OSK Holdings vs. MSCM Holdings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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