Correlation Between Osisko Metals and Postmedia Network
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and Postmedia Network 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 Postmedia Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Metals and Postmedia Network Canada, you can compare the effects of market volatilities on Osisko Metals and Postmedia Network 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 Postmedia Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and Postmedia Network.
Diversification Opportunities for Osisko Metals and Postmedia Network
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Osisko and Postmedia is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Postmedia Network Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postmedia Network Canada 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 Postmedia Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postmedia Network Canada has no effect on the direction of Osisko Metals i.e., Osisko Metals and Postmedia Network go up and down completely randomly.
Pair Corralation between Osisko Metals and Postmedia Network
Given the investment horizon of 90 days Osisko Metals is expected to generate 2.48 times more return on investment than Postmedia Network. However, Osisko Metals is 2.48 times more volatile than Postmedia Network Canada. It trades about 0.09 of its potential returns per unit of risk. Postmedia Network Canada is currently generating about -0.17 per unit of risk. If you would invest 23.00 in Osisko Metals on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Osisko Metals or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Metals vs. Postmedia Network Canada
Performance |
| Timeline |
| Osisko Metals |
| Postmedia Network Canada |
Osisko Metals and Postmedia Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and Postmedia Network
The main advantage of trading using opposite Osisko Metals and Postmedia Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, Postmedia Network 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 Postmedia Network will offset losses from the drop in Postmedia Network's long position.| Osisko Metals vs. Foraco International SA | Osisko Metals vs. Geodrill Limited | Osisko Metals vs. Major Drilling Group | Osisko Metals vs. Bri Chem Corp |
| Postmedia Network vs. TGS Esports | Postmedia Network vs. Osisko Metals | Postmedia Network vs. Lion One Metals | Postmedia Network vs. iSign Media Solutions |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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