Correlation Between Olympic Steel and EXPRESS
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By analyzing existing cross correlation between Olympic Steel and EXPRESS SCRIPTS HLDG, you can compare the effects of market volatilities on Olympic Steel and EXPRESS 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 Olympic Steel with a short position of EXPRESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Steel and EXPRESS.
Diversification Opportunities for Olympic Steel and EXPRESS
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Olympic and EXPRESS is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Steel and EXPRESS SCRIPTS HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXPRESS SCRIPTS HLDG and Olympic Steel 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 Olympic Steel are associated (or correlated) with EXPRESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXPRESS SCRIPTS HLDG has no effect on the direction of Olympic Steel i.e., Olympic Steel and EXPRESS go up and down completely randomly.
Pair Corralation between Olympic Steel and EXPRESS
Given the investment horizon of 90 days Olympic Steel is expected to generate 4.42 times more return on investment than EXPRESS. However, Olympic Steel is 4.42 times more volatile than EXPRESS SCRIPTS HLDG. It trades about 0.09 of its potential returns per unit of risk. EXPRESS SCRIPTS HLDG is currently generating about -0.09 per unit of risk. If you would invest 3,718 in Olympic Steel on September 4, 2024 and sell it today you would earn a total of 565.00 from holding Olympic Steel or generate 15.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.81% |
| Values | Daily Returns |
Olympic Steel vs. EXPRESS SCRIPTS HLDG
Performance |
| Timeline |
| Olympic Steel |
| EXPRESS SCRIPTS HLDG |
Olympic Steel and EXPRESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Steel and EXPRESS
The main advantage of trading using opposite Olympic Steel and EXPRESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Steel position performs unexpectedly, EXPRESS 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 EXPRESS will offset losses from the drop in EXPRESS's long position.| Olympic Steel vs. Constellium Nv | Olympic Steel vs. Century Aluminum | Olympic Steel vs. China Hongqiao Group | Olympic Steel vs. Kaiser Aluminum |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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