Correlation Between Fortuna Silver and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both Fortuna Silver 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 Fortuna Silver and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortuna Silver Mines and Osisko Gold Ro, you can compare the effects of market volatilities on Fortuna Silver 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 Fortuna Silver with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortuna Silver and Osisko Gold.
Diversification Opportunities for Fortuna Silver and Osisko Gold
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fortuna and Osisko is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fortuna Silver Mines 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 Fortuna Silver 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 Fortuna Silver Mines 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 Fortuna Silver i.e., Fortuna Silver and Osisko Gold go up and down completely randomly.
Pair Corralation between Fortuna Silver and Osisko Gold
Considering the 90-day investment horizon Fortuna Silver Mines is expected to under-perform the Osisko Gold. In addition to that, Fortuna Silver is 1.21 times more volatile than Osisko Gold Ro. It trades about -0.09 of its total potential returns per unit of risk. Osisko Gold Ro is currently generating about -0.1 per unit of volatility. If you would invest 2,088 in Osisko Gold Ro on August 24, 2024 and sell it today you would lose (102.00) from holding Osisko Gold Ro or give up 4.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortuna Silver Mines vs. Osisko Gold Ro
Performance |
| Timeline |
| Fortuna Silver Mines |
| Osisko Gold Ro |
Fortuna Silver and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortuna Silver and Osisko Gold
The main advantage of trading using opposite Fortuna Silver and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortuna Silver 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.| Fortuna Silver vs. Pan American Silver | Fortuna Silver vs. Harmony Gold Mining | Fortuna Silver vs. IAMGold | Fortuna Silver vs. Kinross Gold |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |