Correlation Between Osisko Gold and Sprott
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Sprott 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 Gold and Sprott into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Gold Ro and Sprott Inc, you can compare the effects of market volatilities on Osisko Gold and Sprott 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 Gold with a short position of Sprott. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Sprott.
Diversification Opportunities for Osisko Gold and Sprott
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Osisko and Sprott is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Sprott Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Inc and Osisko Gold 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 Gold Ro are associated (or correlated) with Sprott. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Inc has no effect on the direction of Osisko Gold i.e., Osisko Gold and Sprott go up and down completely randomly.
Pair Corralation between Osisko Gold and Sprott
Assuming the 90 days horizon Osisko Gold is expected to generate 2.9 times less return on investment than Sprott. But when comparing it to its historical volatility, Osisko Gold Ro is 1.09 times less risky than Sprott. It trades about 0.01 of its potential returns per unit of risk. Sprott Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,262 in Sprott Inc on November 3, 2024 and sell it today you would earn a total of 49.00 from holding Sprott Inc or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. Sprott Inc
Performance |
| Timeline |
| Osisko Gold Ro |
| Sprott Inc |
Osisko Gold and Sprott Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Sprott
The main advantage of trading using opposite Osisko Gold and Sprott positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Sprott 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 Sprott will offset losses from the drop in Sprott's long position.| Osisko Gold vs. Sandstorm Gold Ltd | Osisko Gold vs. SSR Mining | Osisko Gold vs. MAG Silver Corp | Osisko Gold vs. Pan American Silver |
| Sprott vs. Sandstorm Gold Ltd | Sprott vs. Seabridge Gold | Sprott vs. SilverCrest Metals | Sprott vs. Osisko Gold Ro |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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