Correlation Between Osisko Metals and Jindalee Resources
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and Jindalee Resources 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 Jindalee Resources 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 Jindalee Resources Limited, you can compare the effects of market volatilities on Osisko Metals and Jindalee Resources 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 Jindalee Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and Jindalee Resources.
Diversification Opportunities for Osisko Metals and Jindalee Resources
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Osisko and Jindalee is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals Incorporated and Jindalee Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jindalee 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 Jindalee Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jindalee Resources has no effect on the direction of Osisko Metals i.e., Osisko Metals and Jindalee Resources go up and down completely randomly.
Pair Corralation between Osisko Metals and Jindalee Resources
Assuming the 90 days horizon Osisko Metals is expected to generate 1.83 times less return on investment than Jindalee Resources. But when comparing it to its historical volatility, Osisko Metals Incorporated is 3.36 times less risky than Jindalee Resources. It trades about 0.12 of its potential returns per unit of risk. Jindalee Resources Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Jindalee Resources Limited on August 29, 2024 and sell it today you would lose (1.00) from holding Jindalee Resources Limited or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Metals Incorporated vs. Jindalee Resources Limited
Performance |
| Timeline |
| Osisko Metals |
| Jindalee Resources |
Osisko Metals and Jindalee Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and Jindalee Resources
The main advantage of trading using opposite Osisko Metals and Jindalee Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, Jindalee Resources 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 Jindalee Resources will offset losses from the drop in Jindalee Resources' 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 |
| Jindalee Resources vs. Rockridge Resources | Jindalee Resources vs. Ameriwest Lithium | Jindalee Resources vs. Osisko Metals Incorporated | Jindalee Resources vs. Volt Lithium 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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