Correlation Between Osisko Gold and SSR Mining
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and SSR 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 SSR 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 SSR Mining, you can compare the effects of market volatilities on Osisko Gold and SSR 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 SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and SSR Mining.
Diversification Opportunities for Osisko Gold and SSR Mining
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Osisko and SSR is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR 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 SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Osisko Gold i.e., Osisko Gold and SSR Mining go up and down completely randomly.
Pair Corralation between Osisko Gold and SSR Mining
Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to generate 0.55 times more return on investment than SSR Mining. However, Osisko Gold Ro is 1.82 times less risky than SSR Mining. It trades about -0.14 of its potential returns per unit of risk. SSR Mining is currently generating about -0.09 per unit of risk. If you would invest 2,078 in Osisko Gold Ro on August 28, 2024 and sell it today you would lose (148.00) from holding Osisko Gold Ro or give up 7.12% 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. SSR Mining
Performance |
| Timeline |
| Osisko Gold Ro |
| SSR Mining |
Osisko Gold and SSR Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and SSR Mining
The main advantage of trading using opposite Osisko Gold and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, SSR 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 SSR Mining will offset losses from the drop in SSR 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 |
| SSR Mining vs. Centerra Gold | SSR Mining vs. Gold Fields Ltd | SSR Mining vs. Eldorado Gold Corp | SSR Mining vs. Osisko Gold Ro |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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