Correlation Between Osisko Metals and Fairfax Fin
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and Fairfax Fin 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 Fairfax Fin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Metals and Fairfax Fin Hld, you can compare the effects of market volatilities on Osisko Metals and Fairfax Fin 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 Fairfax Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and Fairfax Fin.
Diversification Opportunities for Osisko Metals and Fairfax Fin
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Osisko and Fairfax is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Fairfax Fin Hld in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fairfax Fin Hld 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 Fairfax Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fairfax Fin Hld has no effect on the direction of Osisko Metals i.e., Osisko Metals and Fairfax Fin go up and down completely randomly.
Pair Corralation between Osisko Metals and Fairfax Fin
If you would invest 2,499 in Fairfax Fin Hld on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Fairfax Fin Hld or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 9.09% |
| Values | Daily Returns |
Osisko Metals vs. Fairfax Fin Hld
Performance |
| Timeline |
| Osisko Metals |
| Fairfax Fin Hld |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Osisko Metals and Fairfax Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and Fairfax Fin
The main advantage of trading using opposite Osisko Metals and Fairfax Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, Fairfax Fin 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 Fairfax Fin will offset losses from the drop in Fairfax Fin'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 |
| Fairfax Fin vs. Osisko Metals | Fairfax Fin vs. South Pacific Metals | Fairfax Fin vs. Solid Impact Investments | Fairfax Fin vs. CNJ Capital Investments |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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