Correlation Between Osisko Metals and CVS HEALTH
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and CVS HEALTH 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 CVS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Metals and CVS HEALTH CDR, you can compare the effects of market volatilities on Osisko Metals and CVS HEALTH 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 CVS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and CVS HEALTH.
Diversification Opportunities for Osisko Metals and CVS HEALTH
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Osisko and CVS is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and CVS HEALTH CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS HEALTH 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 CVS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS HEALTH CDR has no effect on the direction of Osisko Metals i.e., Osisko Metals and CVS HEALTH go up and down completely randomly.
Pair Corralation between Osisko Metals and CVS HEALTH
Given the investment horizon of 90 days Osisko Metals is expected to generate 2.2 times more return on investment than CVS HEALTH. However, Osisko Metals is 2.2 times more volatile than CVS HEALTH CDR. It trades about 0.06 of its potential returns per unit of risk. CVS HEALTH CDR is currently generating about -0.02 per unit of risk. If you would invest 17.00 in Osisko Metals on September 4, 2024 and sell it today you would earn a total of 8.00 from holding Osisko Metals or generate 47.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Osisko Metals vs. CVS HEALTH CDR
Performance |
| Timeline |
| Osisko Metals |
| CVS HEALTH CDR |
Osisko Metals and CVS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and CVS HEALTH
The main advantage of trading using opposite Osisko Metals and CVS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, CVS HEALTH 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 CVS HEALTH will offset losses from the drop in CVS HEALTH's long position.| Osisko Metals vs. First Majestic Silver | Osisko Metals vs. Ivanhoe Energy | Osisko Metals vs. Orezone Gold Corp | Osisko Metals vs. Faraday Copper Corp |
| CVS HEALTH vs. iShares Canadian HYBrid | CVS HEALTH vs. Altagas Cum Red | CVS HEALTH vs. European Residential Real | CVS HEALTH vs. iShares Fundamental Hedged |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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