Correlation Between Empire State and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both Empire State 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 Empire State and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Osisko Gold Royalties, you can compare the effects of market volatilities on Empire State 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 Empire State with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Osisko Gold.
Diversification Opportunities for Empire State and Osisko Gold
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Empire and Osisko is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty 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 Empire State 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 Empire State Realty 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 Empire State i.e., Empire State and Osisko Gold go up and down completely randomly.
Pair Corralation between Empire State and Osisko Gold
Given the investment horizon of 90 days Empire State is expected to generate 1.09 times less return on investment than Osisko Gold. But when comparing it to its historical volatility, Empire State Realty is 1.31 times less risky than Osisko Gold. It trades about 0.09 of its potential returns per unit of risk. Osisko Gold Royalties is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,660 in Osisko Gold Royalties on September 1, 2024 and sell it today you would earn a total of 280.00 from holding Osisko Gold Royalties or generate 16.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Empire State Realty vs. Osisko Gold Royalties
Performance |
| Timeline |
| Empire State Realty |
| Osisko Gold Royalties |
Empire State and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Osisko Gold
The main advantage of trading using opposite Empire State and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State 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.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
| Osisko Gold vs. Wizz Air Holdings | Osisko Gold vs. Ryanair Holdings plc | Osisko Gold vs. Monster Beverage Corp | Osisko Gold vs. Cizzle Biotechnology Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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