Correlation Between Osisko Metals and InterContinental
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and InterContinental 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 InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Metals and InterContinental Hotels Group, you can compare the effects of market volatilities on Osisko Metals and InterContinental 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 InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and InterContinental.
Diversification Opportunities for Osisko Metals and InterContinental
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Osisko and InterContinental is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels 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 InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of Osisko Metals i.e., Osisko Metals and InterContinental go up and down completely randomly.
Pair Corralation between Osisko Metals and InterContinental
Assuming the 90 days trading horizon Osisko Metals is expected to generate 3.96 times more return on investment than InterContinental. However, Osisko Metals is 3.96 times more volatile than InterContinental Hotels Group. It trades about 0.04 of its potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.12 per unit of risk. If you would invest 18.00 in Osisko Metals on October 13, 2024 and sell it today you would earn a total of 5.00 from holding Osisko Metals or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Osisko Metals vs. InterContinental Hotels Group
Performance |
| Timeline |
| Osisko Metals |
| InterContinental Hotels |
Osisko Metals and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and InterContinental
The main advantage of trading using opposite Osisko Metals and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.| Osisko Metals vs. Major Drilling Group | Osisko Metals vs. Ebro Foods SA | Osisko Metals vs. The Boston Beer | Osisko Metals vs. INDOFOOD AGRI RES |
| InterContinental vs. Osisko Metals | InterContinental vs. Nippon Light Metal | InterContinental vs. FIREWEED METALS P | InterContinental vs. Global Ship Lease |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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