Correlation Between Osisko Metals and INTER CARS
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and INTER CARS 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 INTER CARS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Metals and INTER CARS SA, you can compare the effects of market volatilities on Osisko Metals and INTER CARS 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 INTER CARS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and INTER CARS.
Diversification Opportunities for Osisko Metals and INTER CARS
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Osisko and INTER is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA 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 INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of Osisko Metals i.e., Osisko Metals and INTER CARS go up and down completely randomly.
Pair Corralation between Osisko Metals and INTER CARS
Assuming the 90 days trading horizon Osisko Metals is expected to generate 1.79 times more return on investment than INTER CARS. However, Osisko Metals is 1.79 times more volatile than INTER CARS SA. It trades about 0.49 of its potential returns per unit of risk. INTER CARS SA is currently generating about 0.29 per unit of risk. If you would invest 17.00 in Osisko Metals on October 12, 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 | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Osisko Metals vs. INTER CARS SA
Performance |
| Timeline |
| Osisko Metals |
| INTER CARS SA |
Osisko Metals and INTER CARS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and INTER CARS
The main advantage of trading using opposite Osisko Metals and INTER CARS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, INTER CARS 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 INTER CARS will offset losses from the drop in INTER CARS's long position.| Osisko Metals vs. ETFS Coffee ETC | Osisko Metals vs. Martin Marietta Materials | Osisko Metals vs. The Yokohama Rubber | Osisko Metals vs. SANOK RUBBER ZY |
| INTER CARS vs. Yuexiu Transport Infrastructure | INTER CARS vs. Tsingtao Brewery | INTER CARS vs. DAIDO METAL TD | INTER CARS vs. Osisko Metals |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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