Correlation Between Osisko Gold and NXT Energy
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and NXT Energy 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 NXT Energy 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 NXT Energy Solutions, you can compare the effects of market volatilities on Osisko Gold and NXT Energy 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 NXT Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and NXT Energy.
Diversification Opportunities for Osisko Gold and NXT Energy
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Osisko and NXT is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and NXT Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NXT Energy Solutions 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 NXT Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NXT Energy Solutions has no effect on the direction of Osisko Gold i.e., Osisko Gold and NXT Energy go up and down completely randomly.
Pair Corralation between Osisko Gold and NXT Energy
Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to under-perform the NXT Energy. But the stock apears to be less risky and, when comparing its historical volatility, Osisko Gold Ro is 9.72 times less risky than NXT Energy. The stock trades about -0.02 of its potential returns per unit of risk. The NXT Energy Solutions is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 13.00 in NXT Energy Solutions on November 3, 2024 and sell it today you would earn a total of 3.00 from holding NXT Energy Solutions or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. NXT Energy Solutions
Performance |
| Timeline |
| Osisko Gold Ro |
| NXT Energy Solutions |
Osisko Gold and NXT Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and NXT Energy
The main advantage of trading using opposite Osisko Gold and NXT Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, NXT Energy 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 NXT Energy will offset losses from the drop in NXT Energy'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 |
| NXT Energy vs. Dawson Geophysical | NXT Energy vs. Bri Chem Corp | NXT Energy vs. NCS Multistage Holdings | NXT Energy vs. Bristow Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |