Correlation Between Caledonia Mining and Osino Resources
Can any of the company-specific risk be diversified away by investing in both Caledonia Mining 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 Caledonia Mining and Osino Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caledonia Mining and Osino Resources Corp, you can compare the effects of market volatilities on Caledonia Mining 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 Caledonia Mining with a short position of Osino Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caledonia Mining and Osino Resources.
Diversification Opportunities for Caledonia Mining and Osino Resources
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Caledonia and Osino is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Caledonia Mining 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 Caledonia Mining 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 Caledonia Mining 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 Caledonia Mining i.e., Caledonia Mining and Osino Resources go up and down completely randomly.
Pair Corralation between Caledonia Mining and Osino Resources
If you would invest 140.00 in Osino Resources Corp on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Osino Resources Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Caledonia Mining vs. Osino Resources Corp
Performance |
| Timeline |
| Caledonia Mining |
| Osino Resources Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Caledonia Mining and Osino Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caledonia Mining and Osino Resources
The main advantage of trading using opposite Caledonia Mining and Osino Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caledonia Mining 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.| Caledonia Mining vs. DRDGOLD Limited ADR | Caledonia Mining vs. Galiano Gold | Caledonia Mining vs. Mastech Holdings | Caledonia Mining vs. EMX Royalty 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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