Correlation Between Medical Properties and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both Medical Properties 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 Medical Properties and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Properties Trust and Osisko Metals, you can compare the effects of market volatilities on Medical Properties 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 Medical Properties with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and Osisko Metals.
Diversification Opportunities for Medical Properties and Osisko Metals
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Medical and Osisko is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Medical Properties 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 Medical Properties Trust 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 Medical Properties i.e., Medical Properties and Osisko Metals go up and down completely randomly.
Pair Corralation between Medical Properties and Osisko Metals
Assuming the 90 days trading horizon Medical Properties is expected to generate 1.13 times less return on investment than Osisko Metals. But when comparing it to its historical volatility, Medical Properties Trust is 1.13 times less risky than Osisko Metals. It trades about 0.17 of its potential returns per unit of risk. Osisko Metals is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Osisko Metals on November 8, 2024 and sell it today you would earn a total of 4.00 from holding Osisko Metals or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medical Properties Trust vs. Osisko Metals
Performance |
| Timeline |
| Medical Properties Trust |
| Osisko Metals |
Medical Properties and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and Osisko Metals
The main advantage of trading using opposite Medical Properties and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties 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.| Medical Properties vs. Investment Latour AB | Medical Properties vs. Tyson Foods | Medical Properties vs. AOYAMA TRADING | Medical Properties vs. PATTIES FOODS |
| Osisko Metals vs. Apple Inc | Osisko Metals vs. Apple Inc | Osisko Metals vs. Apple Inc | Osisko Metals vs. Apple Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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