Correlation Between Osisko Development and Marathon Gold
Can any of the company-specific risk be diversified away by investing in both Osisko Development and Marathon 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 Osisko Development and Marathon Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Development Corp and Marathon Gold, you can compare the effects of market volatilities on Osisko Development and Marathon 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 Osisko Development with a short position of Marathon Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Development and Marathon Gold.
Diversification Opportunities for Osisko Development and Marathon Gold
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Osisko and Marathon is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Development Corp and Marathon Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Gold and Osisko Development 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 Development Corp are associated (or correlated) with Marathon Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Gold has no effect on the direction of Osisko Development i.e., Osisko Development and Marathon Gold go up and down completely randomly.
Pair Corralation between Osisko Development and Marathon Gold
Considering the 90-day investment horizon Osisko Development Corp is expected to under-perform the Marathon Gold. In addition to that, Osisko Development is 1.35 times more volatile than Marathon Gold. It trades about -0.04 of its total potential returns per unit of risk. Marathon Gold is currently generating about 0.1 per unit of volatility. 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 |
Osisko Development Corp vs. Marathon Gold
Performance |
| Timeline |
| Osisko Development Corp |
| Marathon Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Osisko Development and Marathon Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Development and Marathon Gold
The main advantage of trading using opposite Osisko Development and Marathon Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Development position performs unexpectedly, Marathon 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 Marathon Gold will offset losses from the drop in Marathon Gold's long position.| Osisko Development vs. Gungnir Resources | Osisko Development vs. Omineca Mining and | Osisko Development vs. Sitka Gold Corp | Osisko Development vs. Dakota Gold Corp |
| Marathon Gold vs. I 80 Gold Corp | Marathon Gold vs. Wesdome Gold Mines | Marathon Gold vs. K92 Mining | Marathon Gold vs. Equinox Gold Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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