Correlation Between Osisko Gold and Westhaven Gold
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Westhaven 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 Westhaven 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 Westhaven Gold Corp, you can compare the effects of market volatilities on Osisko Gold and Westhaven 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 Westhaven Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Westhaven Gold.
Diversification Opportunities for Osisko Gold and Westhaven Gold
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Osisko and Westhaven is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Westhaven Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westhaven Gold Corp 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 Westhaven Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westhaven Gold Corp has no effect on the direction of Osisko Gold i.e., Osisko Gold and Westhaven Gold go up and down completely randomly.
Pair Corralation between Osisko Gold and Westhaven Gold
Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to generate 0.28 times more return on investment than Westhaven Gold. However, Osisko Gold Ro is 3.51 times less risky than Westhaven Gold. It trades about 0.07 of its potential returns per unit of risk. Westhaven Gold Corp is currently generating about -0.03 per unit of risk. If you would invest 1,416 in Osisko Gold Ro on September 24, 2024 and sell it today you would earn a total of 413.00 from holding Osisko Gold Ro or generate 29.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. Westhaven Gold Corp
Performance |
| Timeline |
| Osisko Gold Ro |
| Westhaven Gold Corp |
Osisko Gold and Westhaven Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and Westhaven Gold
The main advantage of trading using opposite Osisko Gold and Westhaven Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, Westhaven 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 Westhaven Gold will offset losses from the drop in Westhaven 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 |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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