Correlation Between Olympic Steel and Yik Wo
Can any of the company-specific risk be diversified away by investing in both Olympic Steel and Yik Wo 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 Olympic Steel and Yik Wo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Olympic Steel and Yik Wo International, you can compare the effects of market volatilities on Olympic Steel and Yik Wo 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 Yik Wo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olympic Steel and Yik Wo.
Diversification Opportunities for Olympic Steel and Yik Wo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Olympic and Yik is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Olympic Steel and Yik Wo International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yik Wo International 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 Yik Wo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yik Wo International has no effect on the direction of Olympic Steel i.e., Olympic Steel and Yik Wo go up and down completely randomly.
Pair Corralation between Olympic Steel and Yik Wo
If you would invest 3,910 in Olympic Steel on September 13, 2024 and sell it today you would earn a total of 138.00 from holding Olympic Steel or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.33% |
| Values | Daily Returns |
Olympic Steel vs. Yik Wo International
Performance |
| Timeline |
| Olympic Steel |
| Yik Wo International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Olympic Steel and Yik Wo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olympic Steel and Yik Wo
The main advantage of trading using opposite Olympic Steel and Yik Wo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olympic Steel position performs unexpectedly, Yik Wo 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 Yik Wo will offset losses from the drop in Yik Wo's long position.| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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