Correlation Between Fortune Bay and Osisko Mining
Can any of the company-specific risk be diversified away by investing in both Fortune Bay and Osisko Mining 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 Fortune Bay and Osisko Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortune Bay Corp and Osisko Mining, you can compare the effects of market volatilities on Fortune Bay and Osisko Mining 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 Fortune Bay with a short position of Osisko Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortune Bay and Osisko Mining.
Diversification Opportunities for Fortune Bay and Osisko Mining
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortune and Osisko is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Fortune Bay Corp and Osisko Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Mining and Fortune Bay 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 Fortune Bay Corp are associated (or correlated) with Osisko Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Mining has no effect on the direction of Fortune Bay i.e., Fortune Bay and Osisko Mining go up and down completely randomly.
Pair Corralation between Fortune Bay and Osisko Mining
Assuming the 90 days horizon Fortune Bay Corp is expected to generate 1.82 times more return on investment than Osisko Mining. However, Fortune Bay is 1.82 times more volatile than Osisko Mining. It trades about 0.03 of its potential returns per unit of risk. Osisko Mining is currently generating about 0.03 per unit of risk. If you would invest 20.00 in Fortune Bay Corp on August 30, 2024 and sell it today you would lose (2.00) from holding Fortune Bay Corp or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.96% |
| Values | Daily Returns |
Fortune Bay Corp vs. Osisko Mining
Performance |
| Timeline |
| Fortune Bay Corp |
| Osisko Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fortune Bay and Osisko Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortune Bay and Osisko Mining
The main advantage of trading using opposite Fortune Bay and Osisko Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortune Bay position performs unexpectedly, Osisko Mining 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 Mining will offset losses from the drop in Osisko Mining's long position.| Fortune Bay vs. Silver Hammer Mining | Fortune Bay vs. Reyna Silver Corp | Fortune Bay vs. Guanajuato Silver | Fortune Bay vs. Silver One Resources |
| Osisko Mining vs. Silver Hammer Mining | Osisko Mining vs. Reyna Silver Corp | Osisko Mining vs. Guanajuato Silver | Osisko Mining vs. Silver One Resources |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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