Correlation Between BTU Metals and Osino Resources
Can any of the company-specific risk be diversified away by investing in both BTU Metals and Osino Resources 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 BTU Metals and Osino Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTU Metals Corp and Osino Resources Corp, you can compare the effects of market volatilities on BTU Metals and Osino Resources 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 BTU Metals with a short position of Osino Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTU Metals and Osino Resources.
Diversification Opportunities for BTU Metals and Osino Resources
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTU and Osino is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding BTU Metals Corp and Osino Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osino Resources Corp and BTU Metals 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 BTU Metals Corp are associated (or correlated) with Osino Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osino Resources Corp has no effect on the direction of BTU Metals i.e., BTU Metals and Osino Resources go up and down completely randomly.
Pair Corralation between BTU Metals and Osino Resources
If you would invest 1.91 in BTU Metals Corp on August 25, 2024 and sell it today you would earn a total of 0.14 from holding BTU Metals Corp or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
BTU Metals Corp vs. Osino Resources Corp
Performance |
| Timeline |
| BTU Metals Corp |
| Osino Resources Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
BTU Metals and Osino Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTU Metals and Osino Resources
The main advantage of trading using opposite BTU Metals and Osino Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTU Metals position performs unexpectedly, Osino Resources 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 Osino Resources will offset losses from the drop in Osino Resources' long position.| BTU Metals vs. Aurion Resources | BTU Metals vs. Liberty Gold Corp | BTU Metals vs. Rio2 Limited | BTU Metals vs. Orezone Gold Corp |
| Osino Resources vs. Minera Alamos | Osino Resources vs. Aurion Resources | Osino Resources vs. Minaurum Gold | Osino Resources vs. Rio2 Limited |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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