Correlation Between NeXGold Mining and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both NeXGold Mining 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 NeXGold Mining and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NeXGold Mining Corp and Osisko Metals, you can compare the effects of market volatilities on NeXGold Mining 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 NeXGold Mining with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeXGold Mining and Osisko Metals.
Diversification Opportunities for NeXGold Mining and Osisko Metals
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NeXGold and Osisko is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding NeXGold Mining Corp and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and NeXGold Mining 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 NeXGold Mining Corp 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 NeXGold Mining i.e., NeXGold Mining and Osisko Metals go up and down completely randomly.
Pair Corralation between NeXGold Mining and Osisko Metals
Assuming the 90 days trading horizon NeXGold Mining Corp is expected to under-perform the Osisko Metals. In addition to that, NeXGold Mining is 1.04 times more volatile than Osisko Metals. It trades about -0.01 of its total potential returns per unit of risk. Osisko Metals is currently generating about 0.03 per unit of volatility. If you would invest 22.00 in Osisko Metals on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Osisko Metals or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NeXGold Mining Corp vs. Osisko Metals
Performance |
| Timeline |
| NeXGold Mining Corp |
| Osisko Metals |
NeXGold Mining and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeXGold Mining and Osisko Metals
The main advantage of trading using opposite NeXGold Mining and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeXGold Mining 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.| NeXGold Mining vs. Newmont Goldcorp Corp | NeXGold Mining vs. Agnico Eagle Mines | NeXGold Mining vs. Barrick Gold Corp | NeXGold Mining vs. Wheaton Precious Metals |
| Osisko Metals vs. Algoma Steel Group | Osisko Metals vs. Champion Iron | Osisko Metals vs. International Zeolite Corp | Osisko Metals vs. European Residential Real |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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