Correlation Between I 80 and Olympia Financial

Can any of the company-specific risk be diversified away by investing in both I 80 and Olympia Financial 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 I 80 and Olympia Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between i 80 Gold Corp and Olympia Financial Group, you can compare the effects of market volatilities on I 80 and Olympia Financial 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 I 80 with a short position of Olympia Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and Olympia Financial.

Diversification Opportunities for I 80 and Olympia Financial

-0.8

Correlation Coefficient

I 80  Olympia Financial

Pay attention - limited upside

The 3 months correlation between IAU and Olympia is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding i 80 Gold Corp and Olympia Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olympia Financial and I 80 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 i 80 Gold Corp are associated (or correlated) with Olympia Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olympia Financial has no effect on the direction of I 80 i.e., I 80 and Olympia Financial go up and down completely randomly.

Pair Corralation between I 80 and Olympia Financial

Assuming the 90 days trading horizon i 80 Gold Corp is expected to under-perform the Olympia Financial. In addition to that, I 80 is 2.45 times more volatile than Olympia Financial Group. It trades about -0.03 of its total potential returns per unit of risk. Olympia Financial Group is currently generating about 0.07 per unit of volatility. If you would invest  6,299  in Olympia Financial Group on October 24, 2024 and sell it today you would earn a total of  4,495  from holding Olympia Financial Group or generate 71.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

i 80 Gold Corp  vs.  Olympia Financial Group

i 80 Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days i 80 Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Olympia Financial

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Olympia Financial Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Olympia Financial displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with I 80 and Olympia Financial

The main advantage of trading using opposite I 80 and Olympia Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 position performs unexpectedly, Olympia Financial 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 Olympia Financial will offset losses from the drop in Olympia Financial's long position.

The idea behind i 80 Gold Corp and Olympia Financial Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.