Correlation Between Osisko Metals and BRAEMAR HOTELS
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and BRAEMAR HOTELS 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 Osisko Metals and BRAEMAR HOTELS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Metals and BRAEMAR HOTELS RES, you can compare the effects of market volatilities on Osisko Metals and BRAEMAR HOTELS 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 Osisko Metals with a short position of BRAEMAR HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and BRAEMAR HOTELS.
Diversification Opportunities for Osisko Metals and BRAEMAR HOTELS
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Osisko and BRAEMAR is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and BRAEMAR HOTELS RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRAEMAR HOTELS RES and Osisko Metals 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 Osisko Metals are associated (or correlated) with BRAEMAR HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRAEMAR HOTELS RES has no effect on the direction of Osisko Metals i.e., Osisko Metals and BRAEMAR HOTELS go up and down completely randomly.
Pair Corralation between Osisko Metals and BRAEMAR HOTELS
Assuming the 90 days trading horizon Osisko Metals is expected to generate 1.14 times more return on investment than BRAEMAR HOTELS. However, Osisko Metals is 1.14 times more volatile than BRAEMAR HOTELS RES. It trades about 0.04 of its potential returns per unit of risk. BRAEMAR HOTELS RES is currently generating about 0.01 per unit of risk. If you would invest 17.00 in Osisko Metals on October 11, 2024 and sell it today you would earn a total of 6.00 from holding Osisko Metals or generate 35.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Metals vs. BRAEMAR HOTELS RES
Performance |
| Timeline |
| Osisko Metals |
| BRAEMAR HOTELS RES |
Osisko Metals and BRAEMAR HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and BRAEMAR HOTELS
The main advantage of trading using opposite Osisko Metals and BRAEMAR HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, BRAEMAR HOTELS 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 BRAEMAR HOTELS will offset losses from the drop in BRAEMAR HOTELS's long position.| Osisko Metals vs. Plastic Omnium | Osisko Metals vs. Materialise NV | Osisko Metals vs. COSTCO WHOLESALE CDR | Osisko Metals vs. RETAIL FOOD GROUP |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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