Correlation Between Osisko Gold and Baru Gold
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Baru 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 Baru 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 Baru Gold Corp, you can compare the effects of market volatilities on Osisko Gold and Baru 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 Baru Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Baru Gold.
Diversification Opportunities for Osisko Gold and Baru Gold
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Osisko and Baru is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Baru Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baru Gold Corp 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 Baru Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baru Gold Corp has no effect on the direction of Osisko Gold i.e., Osisko Gold and Baru Gold go up and down completely randomly.
Pair Corralation between Osisko Gold and Baru Gold
Allowing for the 90-day total investment horizon Osisko Gold is expected to generate 6.01 times less return on investment than Baru Gold. But when comparing it to its historical volatility, Osisko Gold Ro is 6.17 times less risky than Baru Gold. It trades about 0.07 of its potential returns per unit of risk. Baru Gold Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.40 in Baru Gold Corp on August 26, 2024 and sell it today you would earn a total of 1.31 from holding Baru Gold Corp or generate 93.57% 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. Baru Gold Corp
Performance |
| Timeline |
| Osisko Gold Ro |
| Baru Gold Corp |
Osisko Gold and Baru Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Baru Gold
The main advantage of trading using opposite Osisko Gold and Baru Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Baru 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 Baru Gold will offset losses from the drop in Baru Gold's long position.| Osisko Gold vs. Wheaton Precious Metals | Osisko Gold vs. Franco Nevada | Osisko Gold vs. Royal Gold | Osisko Gold vs. Fortuna Silver Mines |
| Baru Gold vs. Aurion Resources | Baru Gold vs. Liberty Gold Corp | Baru Gold vs. Orezone Gold Corp | Baru Gold vs. Radisson Mining Resources |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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