Correlation Between AngloGold Ashanti and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both AngloGold Ashanti 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 AngloGold Ashanti and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AngloGold Ashanti plc and Osisko Gold Ro, you can compare the effects of market volatilities on AngloGold Ashanti 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 AngloGold Ashanti with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of AngloGold Ashanti and Osisko Gold.
Diversification Opportunities for AngloGold Ashanti and Osisko Gold
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AngloGold and Osisko is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding AngloGold Ashanti plc and Osisko Gold Ro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Gold Ro and AngloGold Ashanti 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 AngloGold Ashanti plc 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 Ro has no effect on the direction of AngloGold Ashanti i.e., AngloGold Ashanti and Osisko Gold go up and down completely randomly.
Pair Corralation between AngloGold Ashanti and Osisko Gold
Allowing for the 90-day total investment horizon AngloGold Ashanti plc is expected to generate 1.59 times more return on investment than Osisko Gold. However, AngloGold Ashanti is 1.59 times more volatile than Osisko Gold Ro. It trades about 0.07 of its potential returns per unit of risk. Osisko Gold Ro is currently generating about -0.08 per unit of risk. If you would invest 2,729 in AngloGold Ashanti plc on November 1, 2024 and sell it today you would earn a total of 264.00 from holding AngloGold Ashanti plc or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AngloGold Ashanti plc vs. Osisko Gold Ro
Performance |
| Timeline |
| AngloGold Ashanti plc |
| Osisko Gold Ro |
AngloGold Ashanti and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AngloGold Ashanti and Osisko Gold
The main advantage of trading using opposite AngloGold Ashanti and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AngloGold Ashanti 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.| AngloGold Ashanti vs. Harmony Gold Mining | AngloGold Ashanti vs. Eldorado Gold Corp | AngloGold Ashanti vs. Kinross Gold | AngloGold Ashanti vs. Pan American Silver |
| Osisko Gold vs. Wheaton Precious Metals | Osisko Gold vs. Franco Nevada | Osisko Gold vs. Royal Gold | Osisko Gold vs. Fortuna Silver Mines |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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