Correlation Between Antioquia Gold and Osino Resources
Can any of the company-specific risk be diversified away by investing in both Antioquia Gold and Osino Resources 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 Antioquia Gold and Osino Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antioquia Gold and Osino Resources Corp, you can compare the effects of market volatilities on Antioquia Gold and Osino Resources 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 Antioquia Gold with a short position of Osino Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antioquia Gold and Osino Resources.
Diversification Opportunities for Antioquia Gold and Osino Resources
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Antioquia and Osino is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Antioquia Gold and Osino Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osino Resources Corp and Antioquia 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 Antioquia Gold are associated (or correlated) with Osino Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osino Resources Corp has no effect on the direction of Antioquia Gold i.e., Antioquia Gold and Osino Resources go up and down completely randomly.
Pair Corralation between Antioquia Gold and Osino Resources
Assuming the 90 days horizon Antioquia Gold is expected to generate 26.17 times more return on investment than Osino Resources. However, Antioquia Gold is 26.17 times more volatile than Osino Resources Corp. It trades about 0.09 of its potential returns per unit of risk. Osino Resources Corp is currently generating about 0.07 per unit of risk. If you would invest 2.00 in Antioquia Gold on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Antioquia Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 88.51% |
| Values | Daily Returns |
Antioquia Gold vs. Osino Resources Corp
Performance |
| Timeline |
| Antioquia Gold |
| Osino Resources Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
Antioquia Gold and Osino Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antioquia Gold and Osino Resources
The main advantage of trading using opposite Antioquia Gold and Osino Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antioquia Gold position performs unexpectedly, Osino Resources 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 Osino Resources will offset losses from the drop in Osino Resources' long position.| Antioquia Gold vs. Ascendant Resources | Antioquia Gold vs. Cantex Mine Development | Antioquia Gold vs. Amarc Resources | Antioquia Gold vs. Sterling Metals Corp |
| Osino Resources vs. Minera Alamos | Osino Resources vs. Aurion Resources | Osino Resources vs. Minaurum Gold | Osino Resources vs. Rio2 Limited |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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