Correlation Between SSR Mining and Olympic Steel

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SSR Mining and Olympic Steel 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 SSR Mining and Olympic Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSR Mining and Olympic Steel, you can compare the effects of market volatilities on SSR Mining and Olympic Steel 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 SSR Mining with a short position of Olympic Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSR Mining and Olympic Steel.

Diversification Opportunities for SSR Mining and Olympic Steel

-0.09
  Correlation Coefficient

Good diversification

The 3 months correlation between SSR and Olympic is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SSR Mining and Olympic Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olympic Steel and SSR 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 SSR Mining are associated (or correlated) with Olympic Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olympic Steel has no effect on the direction of SSR Mining i.e., SSR Mining and Olympic Steel go up and down completely randomly.

Pair Corralation between SSR Mining and Olympic Steel

Given the investment horizon of 90 days SSR Mining is expected to generate 1.66 times more return on investment than Olympic Steel. However, SSR Mining is 1.66 times more volatile than Olympic Steel. It trades about 0.26 of its potential returns per unit of risk. Olympic Steel is currently generating about -0.46 per unit of risk. If you would invest  576.00  in SSR Mining on September 24, 2024 and sell it today you would earn a total of  136.00  from holding SSR Mining or generate 23.61% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SSR Mining  vs.  Olympic Steel

 Performance 
       Timeline  
SSR Mining 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in SSR Mining are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, SSR Mining displayed solid returns over the last few months and may actually be approaching a breakup point.
Olympic Steel 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Olympic Steel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

SSR Mining and Olympic Steel Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SSR Mining and Olympic Steel

The main advantage of trading using opposite SSR Mining and Olympic Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSR Mining position performs unexpectedly, Olympic Steel 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 Olympic Steel will offset losses from the drop in Olympic Steel's long position.
The idea behind SSR Mining and Olympic Steel 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.
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
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
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk