Correlation Between Fremont Gold and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both Fremont Gold and Osisko Metals 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 Fremont Gold and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fremont Gold and Osisko Metals, you can compare the effects of market volatilities on Fremont Gold and Osisko Metals 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 Fremont Gold with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fremont Gold and Osisko Metals.
Diversification Opportunities for Fremont Gold and Osisko Metals
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fremont and Osisko is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fremont Gold and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Fremont Gold 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 Fremont Gold are associated (or correlated) with Osisko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Metals has no effect on the direction of Fremont Gold i.e., Fremont Gold and Osisko Metals go up and down completely randomly.
Pair Corralation between Fremont Gold and Osisko Metals
Assuming the 90 days horizon Fremont Gold is expected to generate 1.67 times more return on investment than Osisko Metals. However, Fremont Gold is 1.67 times more volatile than Osisko Metals. It trades about 0.04 of its potential returns per unit of risk. Osisko Metals is currently generating about 0.04 per unit of risk. If you would invest 8.50 in Fremont Gold on October 12, 2024 and sell it today you would earn a total of 2.50 from holding Fremont Gold or generate 29.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Fremont Gold vs. Osisko Metals
Performance |
| Timeline |
| Fremont Gold |
| Osisko Metals |
Fremont Gold and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fremont Gold and Osisko Metals
The main advantage of trading using opposite Fremont Gold and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fremont Gold position performs unexpectedly, Osisko Metals 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 Metals will offset losses from the drop in Osisko Metals' long position.| Fremont Gold vs. Tesoro Minerals Corp | Fremont Gold vs. Palamina Corp | Fremont Gold vs. Empire Metals Corp |
| Osisko Metals vs. Fremont Gold | Osisko Metals vs. iShares Canadian HYBrid | Osisko Metals vs. Altagas Cum Red | Osisko Metals vs. European Residential Real |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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