Correlation Between ETFS Coffee and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both ETFS Coffee 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 ETFS Coffee and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETFS Coffee ETC and Osisko Metals, you can compare the effects of market volatilities on ETFS Coffee 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 ETFS Coffee with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETFS Coffee and Osisko Metals.
Diversification Opportunities for ETFS Coffee and Osisko Metals
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ETFS and Osisko is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ETFS Coffee ETC and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and ETFS Coffee 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 ETFS Coffee ETC 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 ETFS Coffee i.e., ETFS Coffee and Osisko Metals go up and down completely randomly.
Pair Corralation between ETFS Coffee and Osisko Metals
Assuming the 90 days trading horizon ETFS Coffee is expected to generate 61.01 times less return on investment than Osisko Metals. But when comparing it to its historical volatility, ETFS Coffee ETC is 2.01 times less risky than Osisko Metals. It trades about 0.02 of its potential returns per unit of risk. Osisko Metals is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Osisko Metals on October 12, 2024 and sell it today you would earn a total of 6.00 from holding Osisko Metals or generate 35.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 83.33% |
| Values | Daily Returns |
ETFS Coffee ETC vs. Osisko Metals
Performance |
| Timeline |
| ETFS Coffee ETC |
| Osisko Metals |
ETFS Coffee and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETFS Coffee and Osisko Metals
The main advantage of trading using opposite ETFS Coffee and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETFS Coffee 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.| ETFS Coffee vs. Clean Energy Fuels | ETFS Coffee vs. CALTAGIRONE EDITORE | ETFS Coffee vs. United States Steel | ETFS Coffee vs. Ultra Clean Holdings |
| Osisko Metals vs. ETFS Coffee ETC | Osisko Metals vs. Martin Marietta Materials | Osisko Metals vs. The Yokohama Rubber | Osisko Metals vs. SANOK RUBBER ZY |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |