Correlation Between Galiano Gold and Osisko Development
Can any of the company-specific risk be diversified away by investing in both Galiano Gold and Osisko Development 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 Galiano Gold and Osisko Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galiano Gold and Osisko Development Corp, you can compare the effects of market volatilities on Galiano Gold and Osisko Development 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 Galiano Gold with a short position of Osisko Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galiano Gold and Osisko Development.
Diversification Opportunities for Galiano Gold and Osisko Development
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galiano and Osisko is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Galiano Gold and Osisko Development Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Development Corp and Galiano 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 Galiano Gold are associated (or correlated) with Osisko Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Development Corp has no effect on the direction of Galiano Gold i.e., Galiano Gold and Osisko Development go up and down completely randomly.
Pair Corralation between Galiano Gold and Osisko Development
Considering the 90-day investment horizon Galiano Gold is expected to generate 0.4 times more return on investment than Osisko Development. However, Galiano Gold is 2.52 times less risky than Osisko Development. It trades about -0.12 of its potential returns per unit of risk. Osisko Development Corp is currently generating about -0.32 per unit of risk. If you would invest 147.00 in Galiano Gold on September 15, 2024 and sell it today you would lose (14.00) from holding Galiano Gold or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Galiano Gold vs. Osisko Development Corp
Performance |
| Timeline |
| Galiano Gold |
| Osisko Development Corp |
Galiano Gold and Osisko Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galiano Gold and Osisko Development
The main advantage of trading using opposite Galiano Gold and Osisko Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galiano Gold position performs unexpectedly, Osisko Development 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 Development will offset losses from the drop in Osisko Development's long position.| Galiano Gold vs. Avino Silver Gold | Galiano Gold vs. Americas Silver Corp | Galiano Gold vs. Paramount Gold Nevada | Galiano Gold vs. Fury Gold Mines |
| Osisko Development vs. Fortitude Gold Corp | Osisko Development vs. New Gold | Osisko Development vs. Galiano Gold | Osisko Development vs. GoldMining |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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