Correlation Between Osisko Gold and Labrador Gold
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Labrador 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 Labrador 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 Labrador Gold Corp, you can compare the effects of market volatilities on Osisko Gold and Labrador 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 Labrador Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Labrador Gold.
Diversification Opportunities for Osisko Gold and Labrador Gold
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Osisko and Labrador is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Labrador Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Labrador 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 Labrador Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Labrador Gold Corp has no effect on the direction of Osisko Gold i.e., Osisko Gold and Labrador Gold go up and down completely randomly.
Pair Corralation between Osisko Gold and Labrador Gold
Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to under-perform the Labrador Gold. But the stock apears to be less risky and, when comparing its historical volatility, Osisko Gold Ro is 3.62 times less risky than Labrador Gold. The stock trades about -0.16 of its potential returns per unit of risk. The Labrador Gold Corp is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 4.50 in Labrador Gold Corp on September 24, 2024 and sell it today you would lose (0.30) from holding Labrador Gold Corp or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. Labrador Gold Corp
Performance |
| Timeline |
| Osisko Gold Ro |
| Labrador Gold Corp |
Osisko Gold and Labrador Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Labrador Gold
The main advantage of trading using opposite Osisko Gold and Labrador Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Labrador 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 Labrador Gold will offset losses from the drop in Labrador Gold'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 |
| Labrador Gold vs. Lion One Metals | Labrador Gold vs. Westhaven Gold Corp | Labrador Gold vs. Satori Resources | Labrador Gold vs. Wesdome Gold Mines |
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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