Correlation Between NYSE Composite and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Osisko Gold Ro, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Osisko Gold.
Diversification Opportunities for NYSE Composite and Osisko Gold
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Osisko is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Osisko Gold go up and down completely randomly.
Pair Corralation between NYSE Composite and Osisko Gold
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.23 times less return on investment than Osisko Gold. But when comparing it to its historical volatility, NYSE Composite is 1.98 times less risky than Osisko Gold. It trades about 0.32 of its potential returns per unit of risk. Osisko Gold Ro is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,860 in Osisko Gold Ro on November 9, 2024 and sell it today you would earn a total of 107.00 from holding Osisko Gold Ro or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Osisko Gold Ro
Performance |
| Timeline |
NYSE Composite and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Osisko Gold Ro
Pair trading matchups for Osisko Gold
Pair Trading with NYSE Composite and Osisko Gold
The main advantage of trading using opposite NYSE Composite and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Integrated Media Technology | NYSE Composite vs. Custom Truck One | NYSE Composite vs. Funko Inc | NYSE Composite vs. Multi Ways Holdings |
| Osisko Gold vs. Wheaton Precious Metals | Osisko Gold vs. Franco Nevada | Osisko Gold vs. Royal Gold | Osisko Gold vs. Fortuna Silver Mines |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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