OSK Holdings (Malaysia) Volatility
| 5053 Stock | 1.62 0.01 0.62% |
As of now, OSK Stock is moderately volatile. OSK Holdings Bhd maintains Sharpe Ratio (i.e., Efficiency) of 0.0888, which implies the firm had a 0.0888% return per unit of volatility over the last 3 months. We have found twenty-nine technical indicators for OSK Holdings Bhd, which you can use to evaluate the volatility of the company. Please check OSK Holdings' risk adjusted performance of 0.0555, and Semi Deviation of 1.01 to confirm if the risk estimate we provide is consistent with the expected return of 0.11%. Key indicators related to OSK Holdings' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
OSK Holdings Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of OSK daily returns, and it is calculated using variance and standard deviation. We also use OSK's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of OSK Holdings volatility.
OSK |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of OSK Holdings at lower prices. For example, an investor can purchase OSK stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving against OSK Stock
| 0.42 | 1295 | Public Bank Bhd | PairCorr |
| 0.4 | 6033 | Petronas Gas Bhd | PairCorr |
| 0.39 | 4057 | Asian Pac Holdings | PairCorr |
| 0.34 | 4162 | British American Tobacco | PairCorr |
OSK Holdings Market Sensitivity And Downside Risk
OSK Holdings' beta coefficient measures the volatility of OSK stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents OSK stock's returns against your selected market. In other words, OSK Holdings's beta of 0.16 provides an investor with an approximation of how much risk OSK Holdings stock can potentially add to one of your existing portfolios. OSK Holdings Bhd has relatively low volatility with skewness of 0.38 and kurtosis of 0.11. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure OSK Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact OSK Holdings' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze OSK Holdings Bhd Demand TrendCheck current 90 days OSK Holdings correlation with market (Dow Jones Industrial)OSK Beta |
OSK standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 1.22 |
It is essential to understand the difference between upside risk (as represented by OSK Holdings's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of OSK Holdings' daily returns or price. Since the actual investment returns on holding a position in osk stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in OSK Holdings.
OSK Holdings Bhd Stock Volatility Analysis
Volatility refers to the frequency at which OSK Holdings stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with OSK Holdings' price changes. Investors will then calculate the volatility of OSK Holdings' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of OSK Holdings' volatility:
Historical Volatility
This type of stock volatility measures OSK Holdings' fluctuations based on previous trends. It's commonly used to predict OSK Holdings' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for OSK Holdings' current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on OSK Holdings' to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. OSK Holdings Bhd Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
OSK Holdings Projected Return Density Against Market
Assuming the 90 days trading horizon OSK Holdings has a beta of 0.1626 . This suggests as returns on the market go up, OSK Holdings average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding OSK Holdings Bhd will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to OSK Holdings or Real Estate sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that OSK Holdings' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a OSK stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
OSK Holdings Bhd has an alpha of 0.0537, implying that it can generate a 0.0537 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an OSK Holdings Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.OSK Holdings Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of OSK Holdings is 1126.73. The daily returns are distributed with a variance of 1.49 and standard deviation of 1.22. The mean deviation of OSK Holdings Bhd is currently at 0.94. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.05 | |
β | Beta against Dow Jones | 0.16 | |
σ | Overall volatility | 1.22 | |
Ir | Information ratio | -0.04 |
OSK Holdings Stock Return Volatility
OSK Holdings historical daily return volatility represents how much of OSK Holdings stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 1.2227% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About OSK Holdings Volatility
Volatility is a rate at which the price of OSK Holdings or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of OSK Holdings may increase or decrease. In other words, similar to OSK's beta indicator, it measures the risk of OSK Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of OSK Holdings fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.3 ways to utilize OSK Holdings' volatility to invest better
Higher OSK Holdings' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of OSK Holdings Bhd stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. OSK Holdings Bhd stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of OSK Holdings Bhd investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in OSK Holdings' stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of OSK Holdings' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
OSK Holdings Investment Opportunity
OSK Holdings Bhd has a volatility of 1.22 and is 1.65 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of OSK Holdings Bhd is lower than 10 percent of all global equities and portfolios over the last 90 days. You can use OSK Holdings Bhd to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of OSK Holdings to be traded at 1.782 in 90 days.Average diversification
The correlation between OSK Holdings Bhd and DJI is 0.1 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding OSK Holdings Bhd and DJI in the same portfolio, assuming nothing else is changed.
OSK Holdings Additional Risk Indicators
The analysis of OSK Holdings' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in OSK Holdings' investment and either accepting that risk or mitigating it. Along with some common measures of OSK Holdings stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0555 | |||
| Market Risk Adjusted Performance | 0.4677 | |||
| Mean Deviation | 0.9777 | |||
| Semi Deviation | 1.01 | |||
| Downside Deviation | 1.27 | |||
| Coefficient Of Variation | 1480.46 | |||
| Standard Deviation | 1.25 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
OSK Holdings Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against OSK Holdings as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. OSK Holdings' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, OSK Holdings' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to OSK Holdings Bhd.
Other Information on Investing in OSK Stock
OSK Holdings financial ratios help investors to determine whether OSK Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in OSK with respect to the benefits of owning OSK Holdings security.