Correlation Between Osisko Mining and HighGold Mining
Can any of the company-specific risk be diversified away by investing in both Osisko Mining and HighGold Mining 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 Osisko Mining and HighGold Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Mining and HighGold Mining, you can compare the effects of market volatilities on Osisko Mining and HighGold Mining 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 Osisko Mining with a short position of HighGold Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Mining and HighGold Mining.
Diversification Opportunities for Osisko Mining and HighGold Mining
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Osisko and HighGold is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Mining and HighGold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HighGold Mining and Osisko 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 Osisko Mining are associated (or correlated) with HighGold Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HighGold Mining has no effect on the direction of Osisko Mining i.e., Osisko Mining and HighGold Mining go up and down completely randomly.
Pair Corralation between Osisko Mining and HighGold Mining
Assuming the 90 days horizon Osisko Mining is expected to generate 1.17 times more return on investment than HighGold Mining. However, Osisko Mining is 1.17 times more volatile than HighGold Mining. It trades about 0.03 of its potential returns per unit of risk. HighGold Mining is currently generating about -0.01 per unit of risk. If you would invest 270.00 in Osisko Mining on August 30, 2024 and sell it today you would earn a total of 81.00 from holding Osisko Mining or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 32.63% |
| Values | Daily Returns |
Osisko Mining vs. HighGold Mining
Performance |
| Timeline |
| Osisko Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| HighGold Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Osisko Mining and HighGold Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Mining and HighGold Mining
The main advantage of trading using opposite Osisko Mining and HighGold Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Mining position performs unexpectedly, HighGold Mining 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 HighGold Mining will offset losses from the drop in HighGold Mining's long position.| Osisko Mining vs. Silver Hammer Mining | Osisko Mining vs. Reyna Silver Corp | Osisko Mining vs. Guanajuato Silver | Osisko Mining vs. Silver One Resources |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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