Correlation Between Olympia Financial and NeuPath Health
Can any of the company-specific risk be diversified away by investing in both Olympia Financial and NeuPath Health 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 NeuPath Health 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 NeuPath Health, you can compare the effects of market volatilities on Olympia Financial and NeuPath Health 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 NeuPath Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympia Financial and NeuPath Health.
Diversification Opportunities for Olympia Financial and NeuPath Health
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Olympia and NeuPath is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Olympia Financial Group and NeuPath Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeuPath Health 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 NeuPath Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeuPath Health has no effect on the direction of Olympia Financial i.e., Olympia Financial and NeuPath Health go up and down completely randomly.
Pair Corralation between Olympia Financial and NeuPath Health
Assuming the 90 days trading horizon Olympia Financial is expected to generate 2.61 times less return on investment than NeuPath Health. But when comparing it to its historical volatility, Olympia Financial Group is 3.16 times less risky than NeuPath Health. It trades about 0.15 of its potential returns per unit of risk. NeuPath Health is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 17.00 in NeuPath Health on November 6, 2024 and sell it today you would earn a total of 5.00 from holding NeuPath Health or generate 29.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olympia Financial Group vs. NeuPath Health
Performance |
| Timeline |
| Olympia Financial |
| NeuPath Health |
Olympia Financial and NeuPath Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympia Financial and NeuPath Health
The main advantage of trading using opposite Olympia Financial and NeuPath Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympia Financial position performs unexpectedly, NeuPath Health 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 NeuPath Health will offset losses from the drop in NeuPath Health'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 |
| NeuPath Health vs. ESE Entertainment | NeuPath Health vs. Therma Bright | NeuPath Health vs. iShares Canadian HYBrid | NeuPath Health vs. Altagas Cum Red |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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