Correlation Between Osisko Gold and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Barrick 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 Barrick 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 Barrick Gold Corp, you can compare the effects of market volatilities on Osisko Gold and Barrick 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 Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Barrick Gold.
Diversification Opportunities for Osisko Gold and Barrick Gold
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Osisko and Barrick is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Barrick Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick 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 Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold Corp has no effect on the direction of Osisko Gold i.e., Osisko Gold and Barrick Gold go up and down completely randomly.
Pair Corralation between Osisko Gold and Barrick Gold
Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to generate 1.05 times more return on investment than Barrick Gold. However, Osisko Gold is 1.05 times more volatile than Barrick Gold Corp. It trades about -0.14 of its potential returns per unit of risk. Barrick Gold Corp is currently generating about -0.28 per unit of risk. If you would invest 2,078 in Osisko Gold Ro on August 28, 2024 and sell it today you would lose (148.00) from holding Osisko Gold Ro or give up 7.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. Barrick Gold Corp
Performance |
| Timeline |
| Osisko Gold Ro |
| Barrick Gold Corp |
Osisko Gold and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Barrick Gold
The main advantage of trading using opposite Osisko Gold and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Barrick 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 Barrick Gold will offset losses from the drop in Barrick Gold's long position.The idea behind Osisko Gold Ro and Barrick Gold Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Pan American Silver | Barrick Gold vs. Wheaton Precious Metals | Barrick Gold vs. Kinross Gold |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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