Correlation Between Osisko Gold and Sandstorm Gold
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Sandstorm Gold 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 Sandstorm Gold 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 Sandstorm Gold Ltd, you can compare the effects of market volatilities on Osisko Gold and Sandstorm Gold 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 Sandstorm Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Sandstorm Gold.
Diversification Opportunities for Osisko Gold and Sandstorm Gold
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Osisko and Sandstorm is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Sandstorm Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandstorm Gold 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 Sandstorm Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandstorm Gold has no effect on the direction of Osisko Gold i.e., Osisko Gold and Sandstorm Gold go up and down completely randomly.
Pair Corralation between Osisko Gold and Sandstorm Gold
Assuming the 90 days horizon Osisko Gold Ro is expected to generate 0.83 times more return on investment than Sandstorm Gold. However, Osisko Gold Ro is 1.2 times less risky than Sandstorm Gold. It trades about 0.06 of its potential returns per unit of risk. Sandstorm Gold Ltd is currently generating about 0.04 per unit of risk. If you would invest 1,661 in Osisko Gold Ro on November 2, 2024 and sell it today you would earn a total of 1,033 from holding Osisko Gold Ro or generate 62.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. Sandstorm Gold Ltd
Performance |
| Timeline |
| Osisko Gold Ro |
| Sandstorm Gold |
Osisko Gold and Sandstorm Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Sandstorm Gold
The main advantage of trading using opposite Osisko Gold and Sandstorm Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Sandstorm Gold 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 Sandstorm Gold will offset losses from the drop in Sandstorm Gold'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 |
| Sandstorm Gold vs. Osisko Gold Ro | Sandstorm Gold vs. Wheaton Precious Metals | Sandstorm Gold vs. Seabridge Gold | Sandstorm Gold vs. MAG Silver 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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