Correlation Between Osisko Gold and I 80
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and I 80 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 I 80 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 I 80 Gold Corp, you can compare the effects of market volatilities on Osisko Gold and I 80 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 I 80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and I 80.
Diversification Opportunities for Osisko Gold and I 80
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Osisko and IAUX is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and I 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I 80 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 I 80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I 80 Gold has no effect on the direction of Osisko Gold i.e., Osisko Gold and I 80 go up and down completely randomly.
Pair Corralation between Osisko Gold and I 80
Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to generate 0.34 times more return on investment than I 80. However, Osisko Gold Ro is 2.96 times less risky than I 80. It trades about 0.07 of its potential returns per unit of risk. I 80 Gold Corp is currently generating about -0.03 per unit of risk. If you would invest 1,381 in Osisko Gold Ro on August 26, 2024 and sell it today you would earn a total of 630.00 from holding Osisko Gold Ro or generate 45.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. I 80 Gold Corp
Performance |
| Timeline |
| Osisko Gold Ro |
| I 80 Gold |
Osisko Gold and I 80 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and I 80
The main advantage of trading using opposite Osisko Gold and I 80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, I 80 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 I 80 will offset losses from the drop in I 80'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 |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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