Correlation Between Osino Resources and Antioquia Gold
Can any of the company-specific risk be diversified away by investing in both Osino Resources and Antioquia 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 Osino Resources and Antioquia Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osino Resources Corp and Antioquia Gold, you can compare the effects of market volatilities on Osino Resources and Antioquia 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 Osino Resources with a short position of Antioquia Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osino Resources and Antioquia Gold.
Diversification Opportunities for Osino Resources and Antioquia Gold
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Osino and Antioquia is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Osino Resources Corp and Antioquia Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antioquia Gold and Osino Resources 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 Osino Resources Corp are associated (or correlated) with Antioquia Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antioquia Gold has no effect on the direction of Osino Resources i.e., Osino Resources and Antioquia Gold go up and down completely randomly.
Pair Corralation between Osino Resources and Antioquia Gold
Assuming the 90 days horizon Osino Resources is expected to generate 52.28 times less return on investment than Antioquia Gold. But when comparing it to its historical volatility, Osino Resources Corp is 37.51 times less risky than Antioquia Gold. It trades about 0.09 of its potential returns per unit of risk. Antioquia Gold is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.40 in Antioquia Gold on August 25, 2024 and sell it today you would earn a total of 1.60 from holding Antioquia Gold or generate 400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 76.8% |
| Values | Daily Returns |
Osino Resources Corp vs. Antioquia Gold
Performance |
| Timeline |
| Osino Resources Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
| Antioquia Gold |
Osino Resources and Antioquia Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osino Resources and Antioquia Gold
The main advantage of trading using opposite Osino Resources and Antioquia Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osino Resources position performs unexpectedly, Antioquia 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 Antioquia Gold will offset losses from the drop in Antioquia Gold's long position.| Osino Resources vs. Minera Alamos | Osino Resources vs. Aurion Resources | Osino Resources vs. Minaurum Gold | Osino Resources vs. Rio2 Limited |
| Antioquia Gold vs. Ascendant Resources | Antioquia Gold vs. Cantex Mine Development | Antioquia Gold vs. Amarc Resources | Antioquia Gold vs. Sterling Metals Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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