Correlation Between Gold Fields and Osisko Development
Can any of the company-specific risk be diversified away by investing in both Gold Fields 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 Gold Fields and Osisko Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Fields Ltd and Osisko Development Corp, you can compare the effects of market volatilities on Gold Fields 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 Gold Fields with a short position of Osisko Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Fields and Osisko Development.
Diversification Opportunities for Gold Fields and Osisko Development
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gold and Osisko is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gold Fields Ltd 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 Gold Fields 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 Gold Fields Ltd 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 Gold Fields i.e., Gold Fields and Osisko Development go up and down completely randomly.
Pair Corralation between Gold Fields and Osisko Development
Considering the 90-day investment horizon Gold Fields Ltd is expected to under-perform the Osisko Development. But the stock apears to be less risky and, when comparing its historical volatility, Gold Fields Ltd is 3.09 times less risky than Osisko Development. The stock trades about -0.16 of its potential returns per unit of risk. The Osisko Development Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Osisko Development Corp on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Osisko Development Corp or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Gold Fields Ltd vs. Osisko Development Corp
Performance |
| Timeline |
| Gold Fields |
| Osisko Development Corp |
Gold Fields and Osisko Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Fields and Osisko Development
The main advantage of trading using opposite Gold Fields and Osisko Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Fields 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.| Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
| Osisko Development vs. Agnico Eagle Mines | Osisko Development vs. Gold Fields Ltd | Osisko Development vs. Franco Nevada | Osisko Development vs. Sandstorm Gold Ltd |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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