Correlation Between Olympic Steel and STATE
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By analyzing existing cross correlation between Olympic Steel and STATE STREET P, you can compare the effects of market volatilities on Olympic Steel and STATE 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 STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Steel and STATE.
Diversification Opportunities for Olympic Steel and STATE
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Olympic and STATE is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Steel and STATE STREET P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STATE STREET 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 STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STATE STREET P has no effect on the direction of Olympic Steel i.e., Olympic Steel and STATE go up and down completely randomly.
Pair Corralation between Olympic Steel and STATE
Given the investment horizon of 90 days Olympic Steel is expected to generate 4.01 times more return on investment than STATE. However, Olympic Steel is 4.01 times more volatile than STATE STREET P. It trades about 0.01 of its potential returns per unit of risk. STATE STREET P is currently generating about 0.03 per unit of risk. If you would invest 4,298 in Olympic Steel on August 31, 2024 and sell it today you would lose (67.00) from holding Olympic Steel or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.73% |
| Values | Daily Returns |
Olympic Steel vs. STATE STREET P
Performance |
| Timeline |
| Olympic Steel |
| STATE STREET P |
Olympic Steel and STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Steel and STATE
The main advantage of trading using opposite Olympic Steel and STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Steel position performs unexpectedly, STATE 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 STATE will offset losses from the drop in STATE'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 |
| STATE vs. Dalata Hotel Group | STATE vs. Century Aluminum | STATE vs. Summit Environmental | STATE vs. Olympic Steel |
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.
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