Correlation Between Grande Portage and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both Grande Portage and Osisko Metals 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 Grande Portage and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grande Portage Resources and Osisko Metals, you can compare the effects of market volatilities on Grande Portage and Osisko Metals 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 Grande Portage with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Portage and Osisko Metals.
Diversification Opportunities for Grande Portage and Osisko Metals
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grande and Osisko is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Grande Portage Resources and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Grande Portage 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 Grande Portage Resources are associated (or correlated) with Osisko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Metals has no effect on the direction of Grande Portage i.e., Grande Portage and Osisko Metals go up and down completely randomly.
Pair Corralation between Grande Portage and Osisko Metals
Assuming the 90 days horizon Grande Portage is expected to generate 1.66 times less return on investment than Osisko Metals. In addition to that, Grande Portage is 1.51 times more volatile than Osisko Metals. It trades about 0.02 of its total potential returns per unit of risk. Osisko Metals is currently generating about 0.04 per unit of volatility. If you would invest 20.00 in Osisko Metals on September 24, 2024 and sell it today you would earn a total of 13.00 from holding Osisko Metals or generate 65.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grande Portage Resources vs. Osisko Metals
Performance |
| Timeline |
| Grande Portage Resources |
| Osisko Metals |
Grande Portage and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Portage and Osisko Metals
The main advantage of trading using opposite Grande Portage and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Portage position performs unexpectedly, Osisko Metals 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 Metals will offset losses from the drop in Osisko Metals' long position.| Grande Portage vs. Wildsky Resources | Grande Portage vs. Q Gold Resources | Grande Portage vs. Plato Gold Corp | Grande Portage vs. MAS Gold Corp |
| Osisko Metals vs. Monarca Minerals | Osisko Metals vs. Outcrop Gold Corp | Osisko Metals vs. Grande Portage Resources | Osisko Metals vs. Klondike Silver Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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