Correlation Between Nicola Mining and Olympia Financial
Can any of the company-specific risk be diversified away by investing in both Nicola Mining 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 Nicola Mining and Olympia Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and Olympia Financial Group, you can compare the effects of market volatilities on Nicola Mining 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 Nicola Mining with a short position of Olympia Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and Olympia Financial.
Diversification Opportunities for Nicola Mining and Olympia Financial
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nicola and Olympia is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and Olympia Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olympia Financial and Nicola Mining 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 Nicola Mining 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 Nicola Mining i.e., Nicola Mining and Olympia Financial go up and down completely randomly.
Pair Corralation between Nicola Mining and Olympia Financial
Assuming the 90 days horizon Nicola Mining is expected to generate 3.28 times more return on investment than Olympia Financial. However, Nicola Mining is 3.28 times more volatile than Olympia Financial Group. It trades about 0.03 of its potential returns per unit of risk. Olympia Financial Group is currently generating about 0.06 per unit of risk. If you would invest 24.00 in Nicola Mining on September 2, 2024 and sell it today you would earn a total of 3.00 from holding Nicola Mining or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nicola Mining vs. Olympia Financial Group
Performance |
| Timeline |
| Nicola Mining |
| Olympia Financial |
Nicola Mining and Olympia Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and Olympia Financial
The main advantage of trading using opposite Nicola Mining and Olympia Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining 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 Nicola Mining 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.| Olympia Financial vs. NovaGold Resources | Olympia Financial vs. HPQ Silicon Resources | Olympia Financial vs. Eastwood Bio Medical Canada | Olympia Financial vs. Diamond Fields Resources |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Transaction History View history of all your transactions and understand their impact on performance |