Correlation Between Osisko Gold and Teck Resources
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Teck Resources 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 Teck Resources 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 Teck Resources Ltd, you can compare the effects of market volatilities on Osisko Gold and Teck Resources 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 Teck Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Teck Resources.
Diversification Opportunities for Osisko Gold and Teck Resources
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Osisko and Teck is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Teck Resources Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teck Resources 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 Teck Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teck Resources has no effect on the direction of Osisko Gold i.e., Osisko Gold and Teck Resources go up and down completely randomly.
Pair Corralation between Osisko Gold and Teck Resources
Allowing for the 90-day total investment horizon Osisko Gold is expected to generate 1.03 times less return on investment than Teck Resources. In addition to that, Osisko Gold is 1.05 times more volatile than Teck Resources Ltd. It trades about 0.1 of its total potential returns per unit of risk. Teck Resources Ltd is currently generating about 0.11 per unit of volatility. If you would invest 4,053 in Teck Resources Ltd on November 1, 2024 and sell it today you would earn a total of 118.00 from holding Teck Resources Ltd or generate 2.91% 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. Teck Resources Ltd
Performance |
| Timeline |
| Osisko Gold Ro |
| Teck Resources |
Osisko Gold and Teck Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Teck Resources
The main advantage of trading using opposite Osisko Gold and Teck Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Teck Resources 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 Teck Resources will offset losses from the drop in Teck Resources' 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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