Correlation Between AMMB Holdings and Oakworth Capital
Can any of the company-specific risk be diversified away by investing in both AMMB Holdings and Oakworth Capital 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 AMMB Holdings and Oakworth Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMMB Holdings Berhad and Oakworth Capital, you can compare the effects of market volatilities on AMMB Holdings and Oakworth Capital 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 AMMB Holdings with a short position of Oakworth Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMMB Holdings and Oakworth Capital.
Diversification Opportunities for AMMB Holdings and Oakworth Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AMMB and Oakworth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMMB Holdings Berhad and Oakworth Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakworth Capital and AMMB 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 AMMB Holdings Berhad are associated (or correlated) with Oakworth Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakworth Capital has no effect on the direction of AMMB Holdings i.e., AMMB Holdings and Oakworth Capital go up and down completely randomly.
Pair Corralation between AMMB Holdings and Oakworth Capital
Assuming the 90 days horizon AMMB Holdings Berhad is expected to generate 0.6 times more return on investment than Oakworth Capital. However, AMMB Holdings Berhad is 1.67 times less risky than Oakworth Capital. It trades about 0.08 of its potential returns per unit of risk. Oakworth Capital is currently generating about -0.01 per unit of risk. If you would invest 55.00 in AMMB Holdings Berhad on September 3, 2024 and sell it today you would earn a total of 35.00 from holding AMMB Holdings Berhad or generate 63.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.16% |
| Values | Daily Returns |
AMMB Holdings Berhad vs. Oakworth Capital
Performance |
| Timeline |
| AMMB Holdings Berhad |
| Oakworth Capital |
AMMB Holdings and Oakworth Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMMB Holdings and Oakworth Capital
The main advantage of trading using opposite AMMB Holdings and Oakworth Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMMB Holdings position performs unexpectedly, Oakworth Capital 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 Oakworth Capital will offset losses from the drop in Oakworth Capital's long position.| AMMB Holdings vs. Alpha Bank SA | AMMB Holdings vs. Deutsche Bank AG | AMMB Holdings vs. Western Alliance Bancorporation | AMMB Holdings vs. KBC Groep NV |
| Oakworth Capital vs. Alpha Bank SA | Oakworth Capital vs. Deutsche Bank AG | Oakworth Capital vs. Western Alliance Bancorporation | Oakworth Capital vs. KBC Groep NV |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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