Correlation Between Osisko Gold and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Catalyst Media 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 Catalyst Media 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 Catalyst Media Group, you can compare the effects of market volatilities on Osisko Gold and Catalyst Media 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 Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Catalyst Media.
Diversification Opportunities for Osisko Gold and Catalyst Media
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Osisko and Catalyst is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Royalties and Catalyst Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Media Group 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 Catalyst Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Media Group has no effect on the direction of Osisko Gold i.e., Osisko Gold and Catalyst Media go up and down completely randomly.
Pair Corralation between Osisko Gold and Catalyst Media
Assuming the 90 days trading horizon Osisko Gold Royalties is expected to generate 0.96 times more return on investment than Catalyst Media. However, Osisko Gold Royalties is 1.04 times less risky than Catalyst Media. It trades about -0.15 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.41 per unit of risk. If you would invest 2,037 in Osisko Gold Royalties on September 4, 2024 and sell it today you would lose (126.00) from holding Osisko Gold Royalties or give up 6.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Royalties vs. Catalyst Media Group
Performance |
| Timeline |
| Osisko Gold Royalties |
| Catalyst Media Group |
Osisko Gold and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Catalyst Media
The main advantage of trading using opposite Osisko Gold and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Catalyst Media 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 Catalyst Media will offset losses from the drop in Catalyst Media's 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 |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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