Correlation Between Olin and Galiano Gold
Can any of the company-specific risk be diversified away by investing in both Olin and Galiano Gold 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 Olin and Galiano Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Olin Corporation and Galiano Gold, you can compare the effects of market volatilities on Olin and Galiano Gold 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 Olin with a short position of Galiano Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olin and Galiano Gold.
Diversification Opportunities for Olin and Galiano Gold
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Olin and Galiano is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Olin Corp. and Galiano Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galiano Gold and Olin 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 Olin Corporation are associated (or correlated) with Galiano Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galiano Gold has no effect on the direction of Olin i.e., Olin and Galiano Gold go up and down completely randomly.
Pair Corralation between Olin and Galiano Gold
Considering the 90-day investment horizon Olin Corporation is expected to under-perform the Galiano Gold. But the stock apears to be less risky and, when comparing its historical volatility, Olin Corporation is 1.24 times less risky than Galiano Gold. The stock trades about -0.31 of its potential returns per unit of risk. The Galiano Gold is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Galiano Gold on November 3, 2024 and sell it today you would lose (28.00) from holding Galiano Gold or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.56% |
| Values | Daily Returns |
Olin Corp. vs. Galiano Gold
Performance |
| Timeline |
| Olin |
| Galiano Gold |
Olin and Galiano Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olin and Galiano Gold
The main advantage of trading using opposite Olin and Galiano Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olin position performs unexpectedly, Galiano Gold 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 Galiano Gold will offset losses from the drop in Galiano Gold's long position.| Olin vs. Select Energy Services | Olin vs. Westlake Chemical | Olin vs. Sensient Technologies | Olin vs. Axalta Coating Systems |
| Galiano Gold vs. Avino Silver Gold | Galiano Gold vs. Americas Silver Corp | Galiano Gold vs. Paramount Gold Nevada | Galiano Gold vs. Fury Gold Mines |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| 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 |