Correlation Between Osisko Gold and Sibanye Gold
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Sibanye 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 Sibanye 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 Sibanye Gold Ltd, you can compare the effects of market volatilities on Osisko Gold and Sibanye 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 Sibanye Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Sibanye Gold.
Diversification Opportunities for Osisko Gold and Sibanye Gold
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Osisko and Sibanye is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Sibanye Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Gold 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 Sibanye Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Gold has no effect on the direction of Osisko Gold i.e., Osisko Gold and Sibanye Gold go up and down completely randomly.
Pair Corralation between Osisko Gold and Sibanye Gold
Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to generate 0.46 times more return on investment than Sibanye Gold. However, Osisko Gold Ro is 2.18 times less risky than Sibanye Gold. It trades about 0.07 of its potential returns per unit of risk. Sibanye Gold Ltd is currently generating about 0.0 per unit of risk. If you would invest 1,441 in Osisko Gold Ro on November 9, 2024 and sell it today you would earn a total of 526.00 from holding Osisko Gold Ro or generate 36.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. Sibanye Gold Ltd
Performance |
| Timeline |
| Osisko Gold Ro |
| Sibanye Gold |
Osisko Gold and Sibanye Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Sibanye Gold
The main advantage of trading using opposite Osisko Gold and Sibanye Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Sibanye 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 Sibanye Gold will offset losses from the drop in Sibanye 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 |
| Sibanye Gold vs. AngloGold Ashanti plc | Sibanye Gold vs. Harmony Gold Mining | Sibanye Gold vs. Eldorado Gold Corp | Sibanye Gold vs. Kinross Gold |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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