Correlation Between Osisko Metals and Winpak
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and Winpak 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 Winpak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Metals and Winpak, you can compare the effects of market volatilities on Osisko Metals and Winpak 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 Winpak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and Winpak.
Diversification Opportunities for Osisko Metals and Winpak
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Osisko and Winpak is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Winpak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winpak 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 Winpak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winpak has no effect on the direction of Osisko Metals i.e., Osisko Metals and Winpak go up and down completely randomly.
Pair Corralation between Osisko Metals and Winpak
Given the investment horizon of 90 days Osisko Metals is expected to generate 6.0 times more return on investment than Winpak. However, Osisko Metals is 6.0 times more volatile than Winpak. It trades about 0.13 of its potential returns per unit of risk. Winpak is currently generating about 0.12 per unit of risk. If you would invest 22.00 in Osisko Metals on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Osisko Metals or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Metals vs. Winpak
Performance |
| Timeline |
| Osisko Metals |
| Winpak |
Osisko Metals and Winpak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and Winpak
The main advantage of trading using opposite Osisko Metals and Winpak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, Winpak 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 Winpak will offset losses from the drop in Winpak'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 |
| Winpak vs. HPQ Silicon Resources | Winpak vs. Champion Iron | Winpak vs. Osisko Metals | Winpak vs. Bip Investment Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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