Correlation Between Karora Resources and Osisko Development
Can any of the company-specific risk be diversified away by investing in both Karora Resources 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 Karora Resources and Osisko Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karora Resources and Osisko Development Corp, you can compare the effects of market volatilities on Karora Resources 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 Karora Resources with a short position of Osisko Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karora Resources and Osisko Development.
Diversification Opportunities for Karora Resources and Osisko Development
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Karora and Osisko is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Karora Resources 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 Karora Resources 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 Karora Resources 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 Karora Resources i.e., Karora Resources and Osisko Development go up and down completely randomly.
Pair Corralation between Karora Resources and Osisko Development
Assuming the 90 days horizon Karora Resources is expected to generate 0.63 times more return on investment than Osisko Development. However, Karora Resources is 1.58 times less risky than Osisko Development. It trades about 0.06 of its potential returns per unit of risk. Osisko Development Corp is currently generating about -0.04 per unit of risk. If you would invest 346.00 in Karora Resources on August 31, 2024 and sell it today you would earn a total of 137.00 from holding Karora Resources or generate 39.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.81% |
| Values | Daily Returns |
Karora Resources vs. Osisko Development Corp
Performance |
| Timeline |
| Karora Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Osisko Development Corp |
Karora Resources and Osisko Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karora Resources and Osisko Development
The main advantage of trading using opposite Karora Resources and Osisko Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karora Resources 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.| Karora Resources vs. K92 Mining | Karora Resources vs. I 80 Gold Corp | Karora Resources vs. Wesdome Gold Mines | Karora Resources vs. GGX Gold Corp |
| Osisko Development vs. Gungnir Resources | Osisko Development vs. Omineca Mining and | Osisko Development vs. Sitka Gold Corp | Osisko Development vs. Dakota Gold 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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