Correlation Between Catalyst Media and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both Catalyst Media 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 Catalyst Media and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Media Group and Osisko Gold Royalties, you can compare the effects of market volatilities on Catalyst Media 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 Catalyst Media with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Osisko Gold.
Diversification Opportunities for Catalyst Media and Osisko Gold
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Catalyst and Osisko is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group 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 Catalyst Media 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 Catalyst Media Group 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 Catalyst Media i.e., Catalyst Media and Osisko Gold go up and down completely randomly.
Pair Corralation between Catalyst Media and Osisko Gold
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Osisko Gold. In addition to that, Catalyst Media is 1.04 times more volatile than Osisko Gold Royalties. It trades about -0.41 of its total potential returns per unit of risk. Osisko Gold Royalties is currently generating about -0.15 per unit of volatility. If you would invest 2,037 in Osisko Gold Royalties on September 4, 2024 and sell it today you would lose (126.00) from holding Osisko Gold Royalties or give up 6.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Media Group vs. Osisko Gold Royalties
Performance |
| Timeline |
| Catalyst Media Group |
| Osisko Gold Royalties |
Catalyst Media and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Osisko Gold
The main advantage of trading using opposite Catalyst Media and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media 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.| Catalyst Media vs. STMicroelectronics NV | Catalyst Media vs. TR Property Investment | Catalyst Media vs. Monks Investment Trust | Catalyst Media vs. Smithson Investment Trust |
| Osisko Gold vs. Catalyst Media Group | Osisko Gold vs. CATLIN GROUP | Osisko Gold vs. RTW Venture Fund | Osisko Gold vs. Secure Property Development |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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