Correlation Between Marathon Gold and Osisko Development
Can any of the company-specific risk be diversified away by investing in both Marathon Gold 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 Marathon Gold and Osisko Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marathon Gold and Osisko Development Corp, you can compare the effects of market volatilities on Marathon Gold 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 Marathon Gold with a short position of Osisko Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Gold and Osisko Development.
Diversification Opportunities for Marathon Gold and Osisko Development
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marathon and Osisko is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Gold 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 Marathon Gold 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 Marathon Gold 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 Marathon Gold i.e., Marathon Gold and Osisko Development go up and down completely randomly.
Pair Corralation between Marathon Gold and Osisko Development
Assuming the 90 days horizon Marathon Gold is expected to generate 0.74 times more return on investment than Osisko Development. However, Marathon Gold is 1.35 times less risky than Osisko Development. It trades about 0.1 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 59.00 in Marathon Gold on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Marathon Gold or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Marathon Gold vs. Osisko Development Corp
Performance |
| Timeline |
| Marathon Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Osisko Development Corp |
Marathon Gold and Osisko Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Gold and Osisko Development
The main advantage of trading using opposite Marathon Gold and Osisko Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Gold 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.| Marathon Gold vs. I 80 Gold Corp | Marathon Gold vs. Wesdome Gold Mines | Marathon Gold vs. K92 Mining | Marathon Gold vs. Equinox Gold Corp |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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