Correlation Between Osisko Gold and Orla Mining
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Orla Mining 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 Orla Mining 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 Orla Mining, you can compare the effects of market volatilities on Osisko Gold and Orla Mining 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 Orla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Orla Mining.
Diversification Opportunities for Osisko Gold and Orla Mining
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Osisko and Orla is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Orla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orla Mining 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 Orla Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orla Mining has no effect on the direction of Osisko Gold i.e., Osisko Gold and Orla Mining go up and down completely randomly.
Pair Corralation between Osisko Gold and Orla Mining
Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to generate 0.54 times more return on investment than Orla Mining. However, Osisko Gold Ro is 1.84 times less risky than Orla Mining. It trades about -0.06 of its potential returns per unit of risk. Orla Mining is currently generating about -0.07 per unit of risk. If you would invest 2,078 in Osisko Gold Ro on August 27, 2024 and sell it today you would lose (67.00) from holding Osisko Gold Ro or give up 3.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. Orla Mining
Performance |
| Timeline |
| Osisko Gold Ro |
| Orla Mining |
Osisko Gold and Orla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Orla Mining
The main advantage of trading using opposite Osisko Gold and Orla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Orla Mining 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 Orla Mining will offset losses from the drop in Orla Mining'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 |
| Orla Mining vs. K92 Mining | Orla Mining vs. Equinox Gold Corp | Orla Mining vs. Contango ORE | Orla Mining vs. Sandstorm Gold Ltd |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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