Correlation Between Osisko Gold and Aeorema Communications
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Aeorema Communications 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 Gold and Aeorema Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Gold Royalties and Aeorema Communications Plc, you can compare the effects of market volatilities on Osisko Gold and Aeorema Communications 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 Gold with a short position of Aeorema Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Aeorema Communications.
Diversification Opportunities for Osisko Gold and Aeorema Communications
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Osisko and Aeorema is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Royalties and Aeorema Communications Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeorema Communications and Osisko Gold 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 Gold Royalties are associated (or correlated) with Aeorema Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeorema Communications has no effect on the direction of Osisko Gold i.e., Osisko Gold and Aeorema Communications go up and down completely randomly.
Pair Corralation between Osisko Gold and Aeorema Communications
Assuming the 90 days trading horizon Osisko Gold Royalties is expected to generate 0.79 times more return on investment than Aeorema Communications. However, Osisko Gold Royalties is 1.27 times less risky than Aeorema Communications. It trades about 0.06 of its potential returns per unit of risk. Aeorema Communications Plc is currently generating about -0.01 per unit of risk. If you would invest 1,201 in Osisko Gold Royalties on September 3, 2024 and sell it today you would earn a total of 745.00 from holding Osisko Gold Royalties or generate 62.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.18% |
| Values | Daily Returns |
Osisko Gold Royalties vs. Aeorema Communications Plc
Performance |
| Timeline |
| Osisko Gold Royalties |
| Aeorema Communications |
Osisko Gold and Aeorema Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Aeorema Communications
The main advantage of trading using opposite Osisko Gold and Aeorema Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Aeorema Communications 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 Aeorema Communications will offset losses from the drop in Aeorema Communications' long position.| Osisko Gold vs. Catalyst Media Group | Osisko Gold vs. CATLIN GROUP | Osisko Gold vs. RTW Venture Fund | Osisko Gold vs. Secure Property Development |
| Aeorema Communications vs. Creo Medical Group | Aeorema Communications vs. Grieg Seafood | Aeorema Communications vs. Medical Properties Trust | Aeorema Communications vs. CompuGroup Medical AG |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |