Correlation Between Canlan Ice and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Osisko Metals, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Osisko Metals.
Diversification Opportunities for Canlan Ice and Osisko Metals
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canlan and Osisko is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Osisko Metals go up and down completely randomly.
Pair Corralation between Canlan Ice and Osisko Metals
Assuming the 90 days trading horizon Canlan Ice is expected to generate 3.19 times less return on investment than Osisko Metals. But when comparing it to its historical volatility, Canlan Ice Sports is 2.33 times less risky than Osisko Metals. It trades about 0.02 of its potential returns per unit of risk. Osisko Metals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Osisko Metals on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Osisko Metals or generate 19.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Osisko Metals
Performance |
| Timeline |
| Canlan Ice Sports |
| Osisko Metals |
Canlan Ice and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Osisko Metals
The main advantage of trading using opposite Canlan Ice and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. Eros Resources Corp | Canlan Ice vs. Apple Inc CDR | Canlan Ice vs. European Residential Real | Canlan Ice vs. Canadian Utilities Ltd |
| Osisko Metals vs. Volcanic Gold Mines | Osisko Metals vs. Wolfden Resources | Osisko Metals vs. Tarku Resources | Osisko Metals vs. Blue Star Gold |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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