Correlation Between Osisko Metals and Graphex Group
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and Graphex Group 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 Graphex Group 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 Graphex Group Limited, you can compare the effects of market volatilities on Osisko Metals and Graphex Group 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 Graphex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and Graphex Group.
Diversification Opportunities for Osisko Metals and Graphex Group
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Osisko and Graphex is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals Incorporated and Graphex Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphex Group Limited 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 Graphex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphex Group Limited has no effect on the direction of Osisko Metals i.e., Osisko Metals and Graphex Group go up and down completely randomly.
Pair Corralation between Osisko Metals and Graphex Group
Assuming the 90 days horizon Osisko Metals Incorporated is expected to generate 0.59 times more return on investment than Graphex Group. However, Osisko Metals Incorporated is 1.7 times less risky than Graphex Group. It trades about 0.06 of its potential returns per unit of risk. Graphex Group Limited is currently generating about -0.01 per unit of risk. If you would invest 13.00 in Osisko Metals Incorporated on November 28, 2024 and sell it today you would earn a total of 12.00 from holding Osisko Metals Incorporated or generate 92.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Osisko Metals Incorporated vs. Graphex Group Limited
Performance |
| Timeline |
| Osisko Metals |
| Graphex Group Limited |
Osisko Metals and Graphex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and Graphex Group
The main advantage of trading using opposite Osisko Metals and Graphex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, Graphex Group 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 Graphex Group will offset losses from the drop in Graphex Group'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 |
| Graphex Group vs. Leading Edge Materials | Graphex Group vs. Lithium Australia NL | Graphex Group vs. Ardea Resources Limited | Graphex Group vs. Blackstone Minerals |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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