Correlation Between Osisko Gold and Noranda Aluminum
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Noranda Aluminum 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 Noranda Aluminum 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 Noranda Aluminum Holding, you can compare the effects of market volatilities on Osisko Gold and Noranda Aluminum 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 Noranda Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Noranda Aluminum.
Diversification Opportunities for Osisko Gold and Noranda Aluminum
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Osisko and Noranda is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Noranda Aluminum Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Noranda Aluminum Holding 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 Noranda Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Noranda Aluminum Holding has no effect on the direction of Osisko Gold i.e., Osisko Gold and Noranda Aluminum go up and down completely randomly.
Pair Corralation between Osisko Gold and Noranda Aluminum
If you would invest 1,858 in Osisko Gold Ro on September 13, 2024 and sell it today you would earn a total of 96.00 from holding Osisko Gold Ro or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. Noranda Aluminum Holding
Performance |
| Timeline |
| Osisko Gold Ro |
| Noranda Aluminum Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Osisko Gold and Noranda Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Noranda Aluminum
The main advantage of trading using opposite Osisko Gold and Noranda Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Noranda Aluminum 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 Noranda Aluminum will offset losses from the drop in Noranda Aluminum'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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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