Correlation Between Fortitude Gold and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both Fortitude Gold 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 Fortitude Gold and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortitude Gold Corp and Osisko Gold Ro, you can compare the effects of market volatilities on Fortitude Gold 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 Fortitude Gold with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortitude Gold and Osisko Gold.
Diversification Opportunities for Fortitude Gold and Osisko Gold
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fortitude and Osisko is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Fortitude Gold Corp 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 Fortitude 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 Fortitude Gold Corp 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 Fortitude Gold i.e., Fortitude Gold and Osisko Gold go up and down completely randomly.
Pair Corralation between Fortitude Gold and Osisko Gold
Given the investment horizon of 90 days Fortitude Gold Corp is expected to generate 0.83 times more return on investment than Osisko Gold. However, Fortitude Gold Corp is 1.21 times less risky than Osisko Gold. It trades about 0.15 of its potential returns per unit of risk. Osisko Gold Ro is currently generating about 0.03 per unit of risk. If you would invest 496.00 in Fortitude Gold Corp on August 27, 2024 and sell it today you would earn a total of 49.00 from holding Fortitude Gold Corp or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortitude Gold Corp vs. Osisko Gold Ro
Performance |
| Timeline |
| Fortitude Gold Corp |
| Osisko Gold Ro |
Fortitude Gold and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortitude Gold and Osisko Gold
The main advantage of trading using opposite Fortitude Gold and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortitude Gold 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.| Fortitude Gold vs. Generationome Properties | Fortitude Gold vs. Gold Resource | Fortitude Gold vs. PermRock Royalty Trust | Fortitude Gold vs. Ellington Residential Mortgage |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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