Correlation Between Monster Beverage and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both Monster Beverage and Osisko Gold 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 Monster Beverage and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monster Beverage Corp and Osisko Gold Royalties, you can compare the effects of market volatilities on Monster Beverage and Osisko Gold 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 Monster Beverage with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and Osisko Gold.
Diversification Opportunities for Monster Beverage and Osisko Gold
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Monster and Osisko is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage Corp and Osisko Gold Royalties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Gold Royalties and Monster Beverage 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 Monster Beverage Corp are associated (or correlated) with Osisko Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Gold Royalties has no effect on the direction of Monster Beverage i.e., Monster Beverage and Osisko Gold go up and down completely randomly.
Pair Corralation between Monster Beverage and Osisko Gold
Assuming the 90 days trading horizon Monster Beverage Corp is expected to generate 0.91 times more return on investment than Osisko Gold. However, Monster Beverage Corp is 1.1 times less risky than Osisko Gold. It trades about 0.08 of its potential returns per unit of risk. Osisko Gold Royalties is currently generating about -0.11 per unit of risk. If you would invest 5,399 in Monster Beverage Corp on September 3, 2024 and sell it today you would earn a total of 141.00 from holding Monster Beverage Corp or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monster Beverage Corp vs. Osisko Gold Royalties
Performance |
| Timeline |
| Monster Beverage Corp |
| Osisko Gold Royalties |
Monster Beverage and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monster Beverage and Osisko Gold
The main advantage of trading using opposite Monster Beverage and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage position performs unexpectedly, Osisko Gold 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 Gold will offset losses from the drop in Osisko Gold's long position.| Monster Beverage vs. Catalyst Media Group | Monster Beverage vs. CATLIN GROUP | Monster Beverage vs. RTW Venture Fund | Monster Beverage vs. Secure Property Development |
| Osisko Gold vs. Catalyst Media Group | Osisko Gold vs. CATLIN GROUP | Osisko Gold vs. RTW Venture Fund | Osisko Gold vs. Secure Property Development |
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 Stocks Directory module to find actively traded stocks across global markets.
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