Correlation Between Olympia Financial and New Pacific
Can any of the company-specific risk be diversified away by investing in both Olympia Financial and New Pacific 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 Olympia Financial and New Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Olympia Financial Group and New Pacific Metals, you can compare the effects of market volatilities on Olympia Financial and New Pacific 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 Olympia Financial with a short position of New Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympia Financial and New Pacific.
Diversification Opportunities for Olympia Financial and New Pacific
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Olympia and New is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Olympia Financial Group and New Pacific Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Pacific Metals and Olympia Financial 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 Olympia Financial Group are associated (or correlated) with New Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Pacific Metals has no effect on the direction of Olympia Financial i.e., Olympia Financial and New Pacific go up and down completely randomly.
Pair Corralation between Olympia Financial and New Pacific
Assuming the 90 days trading horizon Olympia Financial is expected to generate 1.28 times less return on investment than New Pacific. But when comparing it to its historical volatility, Olympia Financial Group is 3.89 times less risky than New Pacific. It trades about 0.05 of its potential returns per unit of risk. New Pacific Metals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 176.00 in New Pacific Metals on October 27, 2024 and sell it today you would earn a total of 0.00 from holding New Pacific Metals or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Olympia Financial Group vs. New Pacific Metals
Performance |
Timeline |
Olympia Financial |
New Pacific Metals |
Olympia Financial and New Pacific Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Olympia Financial and New Pacific
The main advantage of trading using opposite Olympia Financial and New Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympia Financial position performs unexpectedly, New Pacific 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 New Pacific will offset losses from the drop in New Pacific's long position.Olympia Financial vs. Firm Capital Mortgage | ||
Olympia Financial vs. Atrium Mortgage Investment | ||
Olympia Financial vs. MCAN Mortgage | ||
Olympia Financial vs. Accord Financial Corp |
New Pacific vs. SilverCrest Metals | ||
New Pacific vs. Skeena Resources | ||
New Pacific vs. Ascot Resources | ||
New Pacific vs. Orla Mining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |