Correlation Between CCL Industries and Olympia Financial
Can any of the company-specific risk be diversified away by investing in both CCL Industries 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 CCL Industries and Olympia Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCL Industries and Olympia Financial Group, you can compare the effects of market volatilities on CCL Industries 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 CCL Industries with a short position of Olympia Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCL Industries and Olympia Financial.
Diversification Opportunities for CCL Industries and Olympia Financial
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CCL and Olympia is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding CCL Industries and Olympia Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olympia Financial and CCL Industries 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 CCL Industries 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 CCL Industries i.e., CCL Industries and Olympia Financial go up and down completely randomly.
Pair Corralation between CCL Industries and Olympia Financial
Assuming the 90 days trading horizon CCL Industries is expected to under-perform the Olympia Financial. But the stock apears to be less risky and, when comparing its historical volatility, CCL Industries is 1.33 times less risky than Olympia Financial. The stock trades about -0.01 of its potential returns per unit of risk. The Olympia Financial Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9,717 in Olympia Financial Group on November 3, 2024 and sell it today you would earn a total of 1,129 from holding Olympia Financial Group or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCL Industries vs. Olympia Financial Group
Performance |
| Timeline |
| CCL Industries |
| Olympia Financial |
CCL Industries and Olympia Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCL Industries and Olympia Financial
The main advantage of trading using opposite CCL Industries and Olympia Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCL Industries 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.| CCL Industries vs. CCL Industries | CCL Industries vs. Quebecor | CCL Industries vs. Winpak | CCL Industries vs. Restaurant Brands International |
| Olympia Financial vs. Firm Capital Mortgage | Olympia Financial vs. Atrium Mortgage Investment | Olympia Financial vs. MCAN Mortgage | Olympia Financial vs. Accord Financial Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |