Correlation Between Osisko Gold and Minera Alamos
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Minera Alamos 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 Minera Alamos 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 Minera Alamos, you can compare the effects of market volatilities on Osisko Gold and Minera Alamos 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 Minera Alamos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Minera Alamos.
Diversification Opportunities for Osisko Gold and Minera Alamos
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Osisko and Minera is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Minera Alamos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minera Alamos 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 Minera Alamos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minera Alamos has no effect on the direction of Osisko Gold i.e., Osisko Gold and Minera Alamos go up and down completely randomly.
Pair Corralation between Osisko Gold and Minera Alamos
Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to generate 0.47 times more return on investment than Minera Alamos. However, Osisko Gold Ro is 2.13 times less risky than Minera Alamos. It trades about 0.06 of its potential returns per unit of risk. Minera Alamos is currently generating about 0.0 per unit of risk. If you would invest 1,196 in Osisko Gold Ro on August 30, 2024 and sell it today you would earn a total of 735.00 from holding Osisko Gold Ro or generate 61.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. Minera Alamos
Performance |
| Timeline |
| Osisko Gold Ro |
| Minera Alamos |
Osisko Gold and Minera Alamos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Minera Alamos
The main advantage of trading using opposite Osisko Gold and Minera Alamos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Minera Alamos 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 Minera Alamos will offset losses from the drop in Minera Alamos' long position.| Osisko Gold vs. Wheaton Precious Metals | Osisko Gold vs. Franco Nevada | Osisko Gold vs. Royal Gold | Osisko Gold vs. Fortuna Silver Mines |
| Minera Alamos vs. Aurion Resources | Minera Alamos vs. Minaurum Gold | Minera Alamos vs. Rio2 Limited | Minera Alamos vs. Roscan Gold 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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