Correlation Between Gold Royalty and Osisko Development
Can any of the company-specific risk be diversified away by investing in both Gold Royalty 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 Royalty 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 Royalty Corp and Osisko Development Corp, you can compare the effects of market volatilities on Gold Royalty 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 Royalty with a short position of Osisko Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Royalty and Osisko Development.
Diversification Opportunities for Gold Royalty and Osisko Development
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gold and Osisko is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gold Royalty Corp 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 Royalty 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 Royalty Corp 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 Royalty i.e., Gold Royalty and Osisko Development go up and down completely randomly.
Pair Corralation between Gold Royalty and Osisko Development
Given the investment horizon of 90 days Gold Royalty Corp is expected to under-perform the Osisko Development. But the stock apears to be less risky and, when comparing its historical volatility, Gold Royalty Corp is 3.36 times less risky than Osisko Development. The stock trades about -0.19 of its potential returns per unit of risk. The Osisko Development Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 255.00 in Osisko Development Corp on September 2, 2024 and sell it today you would lose (5.00) from holding Osisko Development Corp or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gold Royalty Corp vs. Osisko Development Corp
Performance |
| Timeline |
| Gold Royalty Corp |
| Osisko Development Corp |
Gold Royalty and Osisko Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Royalty and Osisko Development
The main advantage of trading using opposite Gold Royalty and Osisko Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Royalty 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 Royalty vs. Endeavour Silver Corp | Gold Royalty vs. SilverCrest Metals | Gold Royalty vs. Platinum Group Metals | Gold Royalty vs. New Pacific Metals |
| Osisko Development vs. Artemis Gold | Osisko Development vs. Lumina Gold Corp | Osisko Development vs. Liberty Gold Corp | Osisko Development vs. Gold Royalty 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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