Correlation Between Osisko Metals and Québec Nickel
Can any of the company-specific risk be diversified away by investing in both Osisko Metals and Québec Nickel 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 Québec Nickel 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 Qubec Nickel Corp, you can compare the effects of market volatilities on Osisko Metals and Québec Nickel 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 Québec Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and Québec Nickel.
Diversification Opportunities for Osisko Metals and Québec Nickel
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Osisko and Québec is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals Incorporated and Qubec Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qubec Nickel Corp 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 Québec Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qubec Nickel Corp has no effect on the direction of Osisko Metals i.e., Osisko Metals and Québec Nickel go up and down completely randomly.
Pair Corralation between Osisko Metals and Québec Nickel
Assuming the 90 days horizon Osisko Metals Incorporated is expected to generate 0.6 times more return on investment than Québec Nickel. However, Osisko Metals Incorporated is 1.66 times less risky than Québec Nickel. It trades about 0.06 of its potential returns per unit of risk. Qubec Nickel Corp is currently generating about -0.3 per unit of risk. If you would invest 24.00 in Osisko Metals Incorporated on November 27, 2024 and sell it today you would earn a total of 1.00 from holding Osisko Metals Incorporated or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Osisko Metals Incorporated vs. Qubec Nickel Corp
Performance |
| Timeline |
| Osisko Metals |
| Qubec Nickel Corp |
Osisko Metals and Québec Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Metals and Québec Nickel
The main advantage of trading using opposite Osisko Metals and Québec Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, Québec Nickel 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 Québec Nickel will offset losses from the drop in Québec Nickel'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 |
| Québec Nickel vs. Norra Metals Corp | Québec Nickel vs. E79 Resources Corp | Québec Nickel vs. Voltage Metals Corp | Québec Nickel vs. Cantex Mine Development |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |