Correlation Between Olympia Financial and Monument Mining
Can any of the company-specific risk be diversified away by investing in both Olympia Financial and Monument Mining 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 Monument Mining 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 Monument Mining Limited, you can compare the effects of market volatilities on Olympia Financial and Monument Mining 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 Monument Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympia Financial and Monument Mining.
Diversification Opportunities for Olympia Financial and Monument Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Olympia and Monument is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Olympia Financial Group and Monument Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monument Mining 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 Monument Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monument Mining has no effect on the direction of Olympia Financial i.e., Olympia Financial and Monument Mining go up and down completely randomly.
Pair Corralation between Olympia Financial and Monument Mining
Assuming the 90 days trading horizon Olympia Financial is expected to generate 5.25 times less return on investment than Monument Mining. But when comparing it to its historical volatility, Olympia Financial Group is 2.19 times less risky than Monument Mining. It trades about 0.04 of its potential returns per unit of risk. Monument Mining Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Monument Mining Limited on January 17, 2025 and sell it today you would earn a total of 37.00 from holding Monument Mining Limited or generate 370.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympia Financial Group vs. Monument Mining Limited
Performance |
| Timeline |
| Olympia Financial |
| Monument Mining |
Olympia Financial and Monument Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympia Financial and Monument Mining
The main advantage of trading using opposite Olympia Financial and Monument Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympia Financial position performs unexpectedly, Monument Mining 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 Monument Mining will offset losses from the drop in Monument Mining's long position.| Olympia Financial vs. Firm Capital Mortgage | Olympia Financial vs. Atrium Mortgage Investment | Olympia Financial vs. MCAN Mortgage | Olympia Financial vs. Accord Financial Corp |
| Monument Mining vs. Majestic Gold Corp | Monument Mining vs. Gunpoint Exploration | Monument Mining vs. Q Gold Resources | Monument Mining vs. Mundoro Capital |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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