Correlation Between Apple and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both Apple and Osisko Metals 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 Apple and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Osisko Metals, you can compare the effects of market volatilities on Apple and Osisko Metals 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 Apple with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Osisko Metals.
Diversification Opportunities for Apple and Osisko Metals
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apple and Osisko is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Apple 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 Apple Inc are associated (or correlated) with Osisko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Metals has no effect on the direction of Apple i.e., Apple and Osisko Metals go up and down completely randomly.
Pair Corralation between Apple and Osisko Metals
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the Osisko Metals. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 2.29 times less risky than Osisko Metals. The stock trades about -0.52 of its potential returns per unit of risk. The Osisko Metals is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Osisko Metals on October 23, 2024 and sell it today you would lose (1.00) from holding Osisko Metals or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Apple Inc vs. Osisko Metals
Performance |
| Timeline |
| Apple Inc |
| Osisko Metals |
Apple and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Osisko Metals
The main advantage of trading using opposite Apple and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Osisko Metals 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 Metals will offset losses from the drop in Osisko Metals' long position.| Apple vs. THAI BEVERAGE | Apple vs. BOSTON BEER A | Apple vs. NorAm Drilling AS | Apple vs. Soken Chemical Engineering |
| Osisko Metals vs. Apple Inc | Osisko Metals vs. Apple Inc | Osisko Metals vs. Apple Inc | Osisko Metals vs. Apple Inc |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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