Correlation Between Osisko Metals and Amazon CDR
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and Amazon CDR 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 Metals and Amazon CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Metals and Amazon CDR, you can compare the effects of market volatilities on Osisko Metals and Amazon CDR 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 Metals with a short position of Amazon CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and Amazon CDR.
Diversification Opportunities for Osisko Metals and Amazon CDR
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Osisko and Amazon is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Amazon CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon CDR and Osisko Metals 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 Metals are associated (or correlated) with Amazon CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon CDR has no effect on the direction of Osisko Metals i.e., Osisko Metals and Amazon CDR go up and down completely randomly.
Pair Corralation between Osisko Metals and Amazon CDR
Given the investment horizon of 90 days Osisko Metals is expected to generate 2.43 times more return on investment than Amazon CDR. However, Osisko Metals is 2.43 times more volatile than Amazon CDR. It trades about 0.14 of its potential returns per unit of risk. Amazon CDR is currently generating about 0.19 per unit of risk. If you would invest 22.00 in Osisko Metals on October 24, 2024 and sell it today you would earn a total of 9.00 from holding Osisko Metals or generate 40.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Metals vs. Amazon CDR
Performance |
| Timeline |
| Osisko Metals |
| Amazon CDR |
Osisko Metals and Amazon CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and Amazon CDR
The main advantage of trading using opposite Osisko Metals and Amazon CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, Amazon CDR 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 Amazon CDR will offset losses from the drop in Amazon CDR's long position.| Osisko Metals vs. Volcanic Gold Mines | Osisko Metals vs. Wolfden Resources | Osisko Metals vs. Tarku Resources | Osisko Metals vs. Blue Star Gold |
| Amazon CDR vs. Queens Road Capital | Amazon CDR vs. Osisko Metals | Amazon CDR vs. NeXGold Mining Corp | Amazon CDR vs. AKITA Drilling |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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