Correlation Between CELARA and Olympic Steel
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By analyzing existing cross correlation between CELARA 3875 02 NOV 27 and Olympic Steel, you can compare the effects of market volatilities on CELARA 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 CELARA with a short position of Olympic Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CELARA and Olympic Steel.
Diversification Opportunities for CELARA and Olympic Steel
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CELARA and Olympic is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CELARA 3875 02 NOV 27 and Olympic Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olympic Steel and CELARA 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 CELARA 3875 02 NOV 27 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 CELARA i.e., CELARA and Olympic Steel go up and down completely randomly.
Pair Corralation between CELARA and Olympic Steel
Assuming the 90 days trading horizon CELARA 3875 02 NOV 27 is expected to generate 0.24 times more return on investment than Olympic Steel. However, CELARA 3875 02 NOV 27 is 4.17 times less risky than Olympic Steel. It trades about 0.0 of its potential returns per unit of risk. Olympic Steel is currently generating about -0.04 per unit of risk. If you would invest 9,348 in CELARA 3875 02 NOV 27 on September 1, 2024 and sell it today you would earn a total of 7.00 from holding CELARA 3875 02 NOV 27 or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.02% |
| Values | Daily Returns |
CELARA 3875 02 NOV 27 vs. Olympic Steel
Performance |
| Timeline |
| CELARA 3875 02 |
| Olympic Steel |
CELARA and Olympic Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CELARA and Olympic Steel
The main advantage of trading using opposite CELARA and Olympic Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CELARA 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.| CELARA vs. Skillful Craftsman Education | CELARA vs. Ihuman Inc | CELARA vs. Evolution Gaming Group | CELARA vs. Catalyst Pharmaceuticals |
| Olympic Steel vs. Fortitude Gold Corp | Olympic Steel vs. New Gold | Olympic Steel vs. Galiano Gold | Olympic Steel vs. GoldMining |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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