Correlation Between Ebro Foods and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both Ebro Foods 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 Ebro Foods and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebro Foods SA and Osisko Metals, you can compare the effects of market volatilities on Ebro Foods 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 Ebro Foods with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebro Foods and Osisko Metals.
Diversification Opportunities for Ebro Foods and Osisko Metals
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ebro and Osisko is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ebro Foods SA and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Ebro Foods 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 Ebro Foods SA 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 Ebro Foods i.e., Ebro Foods and Osisko Metals go up and down completely randomly.
Pair Corralation between Ebro Foods and Osisko Metals
Assuming the 90 days horizon Ebro Foods is expected to generate 32.07 times less return on investment than Osisko Metals. But when comparing it to its historical volatility, Ebro Foods SA is 4.68 times less risky than Osisko Metals. It trades about 0.07 of its potential returns per unit of risk. Osisko Metals is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Osisko Metals on October 13, 2024 and sell it today you would earn a total of 6.00 from holding Osisko Metals or generate 35.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Ebro Foods SA vs. Osisko Metals
Performance |
| Timeline |
| Ebro Foods SA |
| Osisko Metals |
Ebro Foods and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebro Foods and Osisko Metals
The main advantage of trading using opposite Ebro Foods and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebro Foods 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.| Ebro Foods vs. DATATEC LTD 2 | Ebro Foods vs. VITEC SOFTWARE GROUP | Ebro Foods vs. TERADATA | Ebro Foods vs. Linedata Services SA |
| Osisko Metals vs. Major Drilling Group | Osisko Metals vs. Ebro Foods SA | Osisko Metals vs. The Boston Beer | Osisko Metals vs. INDOFOOD AGRI RES |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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