Correlation Between Olympia Financial and Brookfield Asset
Can any of the company-specific risk be diversified away by investing in both Olympia Financial and Brookfield Asset 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 Brookfield Asset 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 Brookfield Asset Management, you can compare the effects of market volatilities on Olympia Financial and Brookfield Asset 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 Brookfield Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympia Financial and Brookfield Asset.
Diversification Opportunities for Olympia Financial and Brookfield Asset
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Olympia and Brookfield is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Olympia Financial Group and Brookfield Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Asset Man 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 Brookfield Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Asset Man has no effect on the direction of Olympia Financial i.e., Olympia Financial and Brookfield Asset go up and down completely randomly.
Pair Corralation between Olympia Financial and Brookfield Asset
Assuming the 90 days trading horizon Olympia Financial Group is expected to generate 0.91 times more return on investment than Brookfield Asset. However, Olympia Financial Group is 1.09 times less risky than Brookfield Asset. It trades about 0.15 of its potential returns per unit of risk. Brookfield Asset Management is currently generating about 0.14 per unit of risk. If you would invest 10,242 in Olympia Financial Group on September 14, 2024 and sell it today you would earn a total of 393.00 from holding Olympia Financial Group or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympia Financial Group vs. Brookfield Asset Management
Performance |
| Timeline |
| Olympia Financial |
| Brookfield Asset Man |
Olympia Financial and Brookfield Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympia Financial and Brookfield Asset
The main advantage of trading using opposite Olympia Financial and Brookfield Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympia Financial position performs unexpectedly, Brookfield Asset 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 Brookfield Asset will offset losses from the drop in Brookfield Asset's long position.| Olympia Financial vs. Firm Capital Mortgage | Olympia Financial vs. Atrium Mortgage Investment | Olympia Financial vs. MCAN Mortgage | Olympia Financial vs. Chesswood Group Limited |
| Brookfield Asset vs. Fairfax Financial Holdings | Brookfield Asset vs. Partners Value Investments | Brookfield Asset vs. Western Investment | Brookfield Asset vs. Olympia Financial Group |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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