Correlation Between Bank of America and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both Bank of America 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 Bank of America and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Osisko Gold Royalties, you can compare the effects of market volatilities on Bank of America 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 Bank of America with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Osisko Gold.
Diversification Opportunities for Bank of America and Osisko Gold
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Osisko is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Osisko Gold Royalties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Gold Royalties and Bank of America 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 Bank of America 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 Royalties has no effect on the direction of Bank of America i.e., Bank of America and Osisko Gold go up and down completely randomly.
Pair Corralation between Bank of America and Osisko Gold
Considering the 90-day investment horizon Bank of America is expected to generate 0.8 times more return on investment than Osisko Gold. However, Bank of America is 1.25 times less risky than Osisko Gold. It trades about 0.1 of its potential returns per unit of risk. Osisko Gold Royalties is currently generating about 0.07 per unit of risk. If you would invest 3,938 in Bank of America on September 1, 2024 and sell it today you would earn a total of 813.00 from holding Bank of America or generate 20.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Bank of America vs. Osisko Gold Royalties
Performance |
| Timeline |
| Bank of America |
| Osisko Gold Royalties |
Bank of America and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Osisko Gold
The main advantage of trading using opposite Bank of America and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America 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.| Bank of America vs. Citigroup | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| Osisko Gold vs. Wizz Air Holdings | Osisko Gold vs. Ryanair Holdings plc | Osisko Gold vs. Monster Beverage Corp | Osisko Gold vs. Cizzle Biotechnology Holdings |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |