Correlation Between HudBay Minerals and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both HudBay Minerals 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 HudBay Minerals and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HudBay Minerals and Osisko Gold Ro, you can compare the effects of market volatilities on HudBay Minerals 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 HudBay Minerals with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of HudBay Minerals and Osisko Gold.
Diversification Opportunities for HudBay Minerals and Osisko Gold
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HudBay and Osisko is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding HudBay Minerals 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 HudBay Minerals 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 HudBay Minerals 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 HudBay Minerals i.e., HudBay Minerals and Osisko Gold go up and down completely randomly.
Pair Corralation between HudBay Minerals and Osisko Gold
Assuming the 90 days trading horizon HudBay Minerals is expected to generate 1.26 times more return on investment than Osisko Gold. However, HudBay Minerals is 1.26 times more volatile than Osisko Gold Ro. It trades about -0.08 of its potential returns per unit of risk. Osisko Gold Ro is currently generating about -0.14 per unit of risk. If you would invest 1,332 in HudBay Minerals on August 28, 2024 and sell it today you would lose (70.00) from holding HudBay Minerals or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HudBay Minerals vs. Osisko Gold Ro
Performance |
| Timeline |
| HudBay Minerals |
| Osisko Gold Ro |
HudBay Minerals and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HudBay Minerals and Osisko Gold
The main advantage of trading using opposite HudBay Minerals and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HudBay Minerals 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.| HudBay Minerals vs. Lundin Mining | HudBay Minerals vs. First Quantum Minerals | HudBay Minerals vs. Ivanhoe Mines | HudBay Minerals vs. Capstone Mining 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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