Correlation Between Cemex SAB and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both Cemex SAB 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 Cemex SAB and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cemex SAB de and Osisko Gold Ro, you can compare the effects of market volatilities on Cemex SAB 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 Cemex SAB with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemex SAB and Osisko Gold.
Diversification Opportunities for Cemex SAB and Osisko Gold
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cemex and Osisko is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cemex SAB de and Osisko Gold Ro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Gold Ro and Cemex SAB 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 Cemex SAB de 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 Ro has no effect on the direction of Cemex SAB i.e., Cemex SAB and Osisko Gold go up and down completely randomly.
Pair Corralation between Cemex SAB and Osisko Gold
Allowing for the 90-day total investment horizon Cemex SAB de is expected to under-perform the Osisko Gold. In addition to that, Cemex SAB is 1.29 times more volatile than Osisko Gold Ro. It trades about -0.02 of its total potential returns per unit of risk. Osisko Gold Ro is currently generating about 0.09 per unit of volatility. If you would invest 1,351 in Osisko Gold Ro on September 4, 2024 and sell it today you would earn a total of 577.00 from holding Osisko Gold Ro or generate 42.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cemex SAB de vs. Osisko Gold Ro
Performance |
| Timeline |
| Cemex SAB de |
| Osisko Gold Ro |
Cemex SAB and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cemex SAB and Osisko Gold
The main advantage of trading using opposite Cemex SAB and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemex SAB 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.| Cemex SAB vs. Martin Marietta Materials | Cemex SAB vs. Vulcan Materials | Cemex SAB vs. United States Lime |
| Osisko Gold vs. Wheaton Precious Metals | Osisko Gold vs. Franco Nevada | Osisko Gold vs. Royal Gold | Osisko Gold vs. Fortuna Silver Mines |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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