Correlation Between Osisko Gold and Newmont Goldcorp
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Newmont Goldcorp 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 Newmont Goldcorp 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 Newmont Goldcorp Corp, you can compare the effects of market volatilities on Osisko Gold and Newmont Goldcorp 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 Newmont Goldcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Newmont Goldcorp.
Diversification Opportunities for Osisko Gold and Newmont Goldcorp
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Osisko and Newmont is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Newmont Goldcorp Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont Goldcorp 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 Newmont Goldcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont Goldcorp Corp has no effect on the direction of Osisko Gold i.e., Osisko Gold and Newmont Goldcorp go up and down completely randomly.
Pair Corralation between Osisko Gold and Newmont Goldcorp
Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to generate 0.56 times more return on investment than Newmont Goldcorp. However, Osisko Gold Ro is 1.77 times less risky than Newmont Goldcorp. It trades about -0.1 of its potential returns per unit of risk. Newmont Goldcorp Corp is currently generating about -0.34 per unit of risk. If you would invest 2,088 in Osisko Gold Ro on August 24, 2024 and sell it today you would lose (102.00) from holding Osisko Gold Ro or give up 4.89% 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. Newmont Goldcorp Corp
Performance |
| Timeline |
| Osisko Gold Ro |
| Newmont Goldcorp Corp |
Osisko Gold and Newmont Goldcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Newmont Goldcorp
The main advantage of trading using opposite Osisko Gold and Newmont Goldcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Newmont Goldcorp 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 Newmont Goldcorp will offset losses from the drop in Newmont Goldcorp'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 |
| Newmont Goldcorp vs. Gold Fields Ltd | Newmont Goldcorp vs. Barrick Gold Corp | Newmont Goldcorp vs. Pan American Silver | Newmont Goldcorp vs. Franco Nevada |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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