Correlation Between Olympic Steel and FEDEX
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By analyzing existing cross correlation between Olympic Steel and FEDEX P 39, you can compare the effects of market volatilities on Olympic Steel and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Steel and FEDEX.
Diversification Opportunities for Olympic Steel and FEDEX
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Olympic and FEDEX is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Steel and FEDEX P 39 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P has no effect on the direction of Olympic Steel i.e., Olympic Steel and FEDEX go up and down completely randomly.
Pair Corralation between Olympic Steel and FEDEX
Given the investment horizon of 90 days Olympic Steel is expected to generate 2.6 times more return on investment than FEDEX. However, Olympic Steel is 2.6 times more volatile than FEDEX P 39. It trades about 0.0 of its potential returns per unit of risk. FEDEX P 39 is currently generating about -0.19 per unit of risk. If you would invest 4,200 in Olympic Steel on September 12, 2024 and sell it today you would lose (26.00) from holding Olympic Steel or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Olympic Steel vs. FEDEX P 39
Performance |
| Timeline |
| Olympic Steel |
| FEDEX P |
Olympic Steel and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Steel and FEDEX
The main advantage of trading using opposite Olympic Steel and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Steel position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| Olympic Steel vs. Universal Stainless Alloy | Olympic Steel vs. Outokumpu Oyj ADR | Olympic Steel vs. Usinas Siderurgicas de | Olympic Steel vs. POSCO Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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