Correlation Between Brookfield Asset and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both Brookfield Asset 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 Brookfield Asset and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Asset Management and Osisko Metals, you can compare the effects of market volatilities on Brookfield Asset 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 Brookfield Asset with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Asset and Osisko Metals.
Diversification Opportunities for Brookfield Asset and Osisko Metals
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Brookfield and Osisko is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Asset Management and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Brookfield Asset 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 Brookfield Asset Management 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 Brookfield Asset i.e., Brookfield Asset and Osisko Metals go up and down completely randomly.
Pair Corralation between Brookfield Asset and Osisko Metals
Assuming the 90 days trading horizon Brookfield Asset is expected to generate 1.55 times less return on investment than Osisko Metals. But when comparing it to its historical volatility, Brookfield Asset Management is 7.19 times less risky than Osisko Metals. It trades about 0.42 of its potential returns per unit of risk. Osisko Metals is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Osisko Metals on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Osisko Metals or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Asset Management vs. Osisko Metals
Performance |
| Timeline |
| Brookfield Asset Man |
| Osisko Metals |
Brookfield Asset and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Asset and Osisko Metals
The main advantage of trading using opposite Brookfield Asset and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Asset 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.| Brookfield Asset vs. Quipt Home Medical | Brookfield Asset vs. Converge Technology Solutions | Brookfield Asset vs. Rogers Communications | Brookfield Asset vs. Verizon Communications CDR |
| Osisko Metals vs. Kiplin Metals | Osisko Metals vs. Pure Energy Minerals | Osisko Metals vs. Noram Lithium Corp | Osisko Metals vs. Minnova Corp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |