Correlation Between Osisko Metals and Canaf Investments
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and Canaf Investments 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 Canaf Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Metals and Canaf Investments, you can compare the effects of market volatilities on Osisko Metals and Canaf Investments 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 Canaf Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and Canaf Investments.
Diversification Opportunities for Osisko Metals and Canaf Investments
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Osisko and Canaf is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Canaf Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaf Investments 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 Canaf Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaf Investments has no effect on the direction of Osisko Metals i.e., Osisko Metals and Canaf Investments go up and down completely randomly.
Pair Corralation between Osisko Metals and Canaf Investments
Given the investment horizon of 90 days Osisko Metals is expected to generate 1.49 times more return on investment than Canaf Investments. However, Osisko Metals is 1.49 times more volatile than Canaf Investments. It trades about 0.41 of its potential returns per unit of risk. Canaf Investments is currently generating about 0.35 per unit of risk. If you would invest 26.00 in Osisko Metals on October 12, 2024 and sell it today you would earn a total of 10.00 from holding Osisko Metals or generate 38.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Metals vs. Canaf Investments
Performance |
| Timeline |
| Osisko Metals |
| Canaf Investments |
Osisko Metals and Canaf Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and Canaf Investments
The main advantage of trading using opposite Osisko Metals and Canaf Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, Canaf Investments 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 Canaf Investments will offset losses from the drop in Canaf Investments' long position.| Osisko Metals vs. Volcanic Gold Mines | Osisko Metals vs. Wolfden Resources | Osisko Metals vs. Tarku Resources | Osisko Metals vs. Blue Star Gold |
| Canaf Investments vs. South Pacific Metals | Canaf Investments vs. Sun Peak Metals | Canaf Investments vs. XXIX Metal Corp | Canaf Investments vs. Osisko Metals |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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