Correlation Between PT Global and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both PT Global and Osisko Metals 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 PT Global and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Global Mediacom and Osisko Metals, you can compare the effects of market volatilities on PT Global and Osisko Metals 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 PT Global with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Global and Osisko Metals.
Diversification Opportunities for PT Global and Osisko Metals
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 06L and Osisko is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding PT Global Mediacom and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and PT Global 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 PT Global Mediacom are associated (or correlated) with Osisko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Metals has no effect on the direction of PT Global i.e., PT Global and Osisko Metals go up and down completely randomly.
Pair Corralation between PT Global and Osisko Metals
Assuming the 90 days trading horizon PT Global Mediacom is expected to generate 1.74 times more return on investment than Osisko Metals. However, PT Global is 1.74 times more volatile than Osisko Metals. It trades about -0.04 of its potential returns per unit of risk. Osisko Metals is currently generating about -0.11 per unit of risk. If you would invest 0.60 in PT Global Mediacom on November 7, 2024 and sell it today you would lose (0.05) from holding PT Global Mediacom or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Global Mediacom vs. Osisko Metals
Performance |
| Timeline |
| PT Global Mediacom |
| Osisko Metals |
PT Global and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Global and Osisko Metals
The main advantage of trading using opposite PT Global and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Global position performs unexpectedly, Osisko Metals 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 Osisko Metals will offset losses from the drop in Osisko Metals' long position.| PT Global vs. Kingdee International Software | PT Global vs. THORNEY TECHS LTD | PT Global vs. CanSino Biologics | PT Global vs. Bio Techne Corp |
| Osisko Metals vs. Apple Inc | Osisko Metals vs. Apple Inc | Osisko Metals vs. Apple Inc | Osisko Metals vs. Apple Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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