Correlation Between Osisko Metals and Fairfax Financial
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and Fairfax Financial 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 Financial 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 Financial Holdings, you can compare the effects of market volatilities on Osisko Metals and Fairfax Financial 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 Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and Fairfax Financial.
Diversification Opportunities for Osisko Metals and Fairfax Financial
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Osisko and Fairfax is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Fairfax Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fairfax Financial 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 Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fairfax Financial has no effect on the direction of Osisko Metals i.e., Osisko Metals and Fairfax Financial go up and down completely randomly.
Pair Corralation between Osisko Metals and Fairfax Financial
Given the investment horizon of 90 days Osisko Metals is expected to generate 3.92 times more return on investment than Fairfax Financial. However, Osisko Metals is 3.92 times more volatile than Fairfax Financial Holdings. It trades about 0.25 of its potential returns per unit of risk. Fairfax Financial Holdings is currently generating about 0.18 per unit of risk. If you would invest 27.00 in Osisko Metals on September 20, 2024 and sell it today you would earn a total of 6.00 from holding Osisko Metals or generate 22.22% 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. Fairfax Financial Holdings
Performance |
| Timeline |
| Osisko Metals |
| Fairfax Financial |
Osisko Metals and Fairfax Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and Fairfax Financial
The main advantage of trading using opposite Osisko Metals and Fairfax Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, Fairfax Financial 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 Financial will offset losses from the drop in Fairfax Financial's long position.| Osisko Metals vs. Foraco International SA | Osisko Metals vs. Geodrill Limited | Osisko Metals vs. Bri Chem Corp |
| Fairfax Financial vs. Nicola Mining | Fairfax Financial vs. Osisko Metals | Fairfax Financial vs. Aya Gold Silver | Fairfax Financial vs. Electra Battery Materials |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |