Correlation Between Osisko Gold and Sun Life
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Sun Life 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 Sun Life 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 Sun Life Financial, you can compare the effects of market volatilities on Osisko Gold and Sun Life 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 Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Sun Life.
Diversification Opportunities for Osisko Gold and Sun Life
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Osisko and Sun is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial 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 Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of Osisko Gold i.e., Osisko Gold and Sun Life go up and down completely randomly.
Pair Corralation between Osisko Gold and Sun Life
Assuming the 90 days horizon Osisko Gold Ro is expected to generate 2.24 times more return on investment than Sun Life. However, Osisko Gold is 2.24 times more volatile than Sun Life Financial. It trades about 0.06 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.06 per unit of risk. If you would invest 1,667 in Osisko Gold Ro on August 28, 2024 and sell it today you would earn a total of 1,032 from holding Osisko Gold Ro or generate 61.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. Sun Life Financial
Performance |
| Timeline |
| Osisko Gold Ro |
| Sun Life Financial |
Osisko Gold and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Sun Life
The main advantage of trading using opposite Osisko Gold and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Sun Life 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 Sun Life will offset losses from the drop in Sun Life's long position.| Osisko Gold vs. First Majestic Silver | Osisko Gold vs. Ivanhoe Energy | Osisko Gold vs. Orezone Gold Corp |
| Sun Life vs. Forstrong Global Income | Sun Life vs. BMO Aggregate Bond | Sun Life vs. Terreno Resources Corp | Sun Life vs. iShares Canadian HYBrid |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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