Correlation Between Sunway Construction and OSK Holdings
Can any of the company-specific risk be diversified away by investing in both Sunway Construction 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 Sunway Construction and OSK Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunway Construction Group and OSK Holdings Bhd, you can compare the effects of market volatilities on Sunway Construction 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 Sunway Construction with a short position of OSK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunway Construction and OSK Holdings.
Diversification Opportunities for Sunway Construction and OSK Holdings
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sunway and OSK is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sunway Construction Group 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 Sunway Construction 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 Sunway Construction Group 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 Sunway Construction i.e., Sunway Construction and OSK Holdings go up and down completely randomly.
Pair Corralation between Sunway Construction and OSK Holdings
Assuming the 90 days trading horizon Sunway Construction is expected to generate 1.82 times less return on investment than OSK Holdings. In addition to that, Sunway Construction is 1.65 times more volatile than OSK Holdings Bhd. It trades about 0.04 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 160.00 in OSK Holdings Bhd on September 25, 2024 and sell it today you would earn a total of 14.00 from holding OSK Holdings Bhd or generate 8.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sunway Construction Group vs. OSK Holdings Bhd
Performance |
Timeline |
Sunway Construction |
OSK Holdings Bhd |
Sunway Construction and OSK Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunway Construction and OSK Holdings
The main advantage of trading using opposite Sunway Construction and OSK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunway Construction 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.Sunway Construction vs. ES Ceramics Technology | Sunway Construction vs. MI Technovation Bhd | Sunway Construction vs. Diversified Gateway Solutions | Sunway Construction vs. MClean Technologies Bhd |
OSK Holdings vs. Asian Pac Holdings | OSK Holdings vs. RHB Bank Bhd | OSK Holdings vs. ECS ICT Bhd | OSK Holdings vs. Silver Ridge Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |