Correlation Between Osisko Gold and Metalla Royalty
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Metalla Royalty 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 Metalla Royalty 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 Metalla Royalty Streaming, you can compare the effects of market volatilities on Osisko Gold and Metalla Royalty 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 Metalla Royalty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Metalla Royalty.
Diversification Opportunities for Osisko Gold and Metalla Royalty
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Osisko and Metalla is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Metalla Royalty Streaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalla Royalty Streaming 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 Metalla Royalty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalla Royalty Streaming has no effect on the direction of Osisko Gold i.e., Osisko Gold and Metalla Royalty go up and down completely randomly.
Pair Corralation between Osisko Gold and Metalla Royalty
Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to generate 0.6 times more return on investment than Metalla Royalty. However, Osisko Gold Ro is 1.66 times less risky than Metalla Royalty. It trades about 0.06 of its potential returns per unit of risk. Metalla Royalty Streaming is currently generating about -0.02 per unit of risk. If you would invest 1,245 in Osisko Gold Ro on August 28, 2024 and sell it today you would earn a total of 699.00 from holding Osisko Gold Ro or generate 56.14% 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. Metalla Royalty Streaming
Performance |
| Timeline |
| Osisko Gold Ro |
| Metalla Royalty Streaming |
Osisko Gold and Metalla Royalty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Metalla Royalty
The main advantage of trading using opposite Osisko Gold and Metalla Royalty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Metalla Royalty 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 Metalla Royalty will offset losses from the drop in Metalla Royalty'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 |
| Metalla Royalty vs. Hecla Mining | Metalla Royalty vs. McEwen Mining | Metalla Royalty vs. Endeavour Silver Corp | Metalla Royalty vs. New Pacific Metals |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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