Correlation Between Olympia Financial and M Split

Can any of the company-specific risk be diversified away by investing in both Olympia Financial and M Split 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 M Split 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 M Split Corp, you can compare the effects of market volatilities on Olympia Financial and M Split 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 M Split. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympia Financial and M Split.

Diversification Opportunities for Olympia Financial and M Split

0.0

Correlation Coefficient

Olympia Financial  M Split

Pay attention - limited upside

The 3 months correlation between Olympia and XMF-PB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Olympia Financial Group and M Split Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M Split Corp 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 M Split. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M Split Corp has no effect on the direction of Olympia Financial i.e., Olympia Financial and M Split go up and down completely randomly.

Pair Corralation between Olympia Financial and M Split

If you would invest  9,829  in Olympia Financial Group on October 11, 2024 and sell it today you would earn a total of  1,055  from holding Olympia Financial Group or generate 10.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Olympia Financial Group  vs.  M Split Corp

Olympia Financial

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Olympia Financial Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Olympia Financial may actually be approaching a critical reversion point that can send shares even higher in February 2025.

M Split Corp

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days M Split Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, M Split is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Olympia Financial and M Split

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

The idea behind Olympia Financial Group and M Split Corp 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.