Correlation Between MAG Silver and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both MAG Silver 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 MAG Silver and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG Silver Corp and Osisko Gold Ro, you can compare the effects of market volatilities on MAG Silver 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 MAG Silver with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG Silver and Osisko Gold.
Diversification Opportunities for MAG Silver and Osisko Gold
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MAG and Osisko is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding MAG Silver Corp 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 MAG Silver 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 MAG Silver Corp 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 MAG Silver i.e., MAG Silver and Osisko Gold go up and down completely randomly.
Pair Corralation between MAG Silver and Osisko Gold
Assuming the 90 days trading horizon MAG Silver is expected to generate 1.18 times less return on investment than Osisko Gold. In addition to that, MAG Silver is 1.45 times more volatile than Osisko Gold Ro. It trades about 0.04 of its total potential returns per unit of risk. Osisko Gold Ro is currently generating about 0.06 per unit of volatility. If you would invest 1,661 in Osisko Gold Ro on November 2, 2024 and sell it today you would earn a total of 1,033 from holding Osisko Gold Ro or generate 62.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAG Silver Corp vs. Osisko Gold Ro
Performance |
| Timeline |
| MAG Silver Corp |
| Osisko Gold Ro |
MAG Silver and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG Silver and Osisko Gold
The main advantage of trading using opposite MAG Silver and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG Silver 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.| MAG Silver vs. Pan American Silver | MAG Silver vs. Endeavour Silver Corp | MAG Silver vs. SSR Mining | MAG Silver vs. Osisko Gold Ro |
| Osisko Gold vs. Sandstorm Gold Ltd | Osisko Gold vs. SSR Mining | Osisko Gold vs. MAG Silver Corp | Osisko Gold vs. Pan American Silver |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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