Correlation Between Osisko Metals and Golden Goliath
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and Golden Goliath 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 Golden Goliath into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Metals Incorporated and Golden Goliath Resources, you can compare the effects of market volatilities on Osisko Metals and Golden Goliath 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 Golden Goliath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and Golden Goliath.
Diversification Opportunities for Osisko Metals and Golden Goliath
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Osisko and Golden is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals Incorporated and Golden Goliath Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Goliath Resources 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 Incorporated are associated (or correlated) with Golden Goliath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Goliath Resources has no effect on the direction of Osisko Metals i.e., Osisko Metals and Golden Goliath go up and down completely randomly.
Pair Corralation between Osisko Metals and Golden Goliath
Assuming the 90 days horizon Osisko Metals is expected to generate 4.94 times less return on investment than Golden Goliath. But when comparing it to its historical volatility, Osisko Metals Incorporated is 2.49 times less risky than Golden Goliath. It trades about 0.06 of its potential returns per unit of risk. Golden Goliath Resources is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4.65 in Golden Goliath Resources on November 27, 2024 and sell it today you would earn a total of 0.62 from holding Golden Goliath Resources or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Osisko Metals Incorporated vs. Golden Goliath Resources
Performance |
| Timeline |
| Osisko Metals |
| Golden Goliath Resources |
Osisko Metals and Golden Goliath Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and Golden Goliath
The main advantage of trading using opposite Osisko Metals and Golden Goliath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, Golden Goliath 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 Golden Goliath will offset losses from the drop in Golden Goliath's long position.| Osisko Metals vs. C3 Metals | Osisko Metals vs. Syrah Resources Limited | Osisko Metals vs. Saint Jean Carbon | Osisko Metals vs. Volt Lithium Corp |
| Golden Goliath vs. Silver Spruce Resources | Golden Goliath vs. Portofino Resources | Golden Goliath vs. Freegold Ventures Limited | Golden Goliath vs. Bravada Gold |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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