Correlation Between Osino Resources and Sandstorm Gold
Can any of the company-specific risk be diversified away by investing in both Osino Resources and Sandstorm 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 Sandstorm 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 Sandstorm Gold Ltd, you can compare the effects of market volatilities on Osino Resources and Sandstorm 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 Sandstorm Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osino Resources and Sandstorm Gold.
Diversification Opportunities for Osino Resources and Sandstorm Gold
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Osino and Sandstorm is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Osino Resources Corp and Sandstorm Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandstorm 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 Sandstorm Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandstorm Gold has no effect on the direction of Osino Resources i.e., Osino Resources and Sandstorm Gold go up and down completely randomly.
Pair Corralation between Osino Resources and Sandstorm Gold
Assuming the 90 days horizon Osino Resources Corp is expected to generate 1.31 times more return on investment than Sandstorm Gold. However, Osino Resources is 1.31 times more volatile than Sandstorm Gold Ltd. It trades about 0.07 of its potential returns per unit of risk. Sandstorm Gold Ltd is currently generating about 0.02 per unit of risk. If you would invest 83.00 in Osino Resources Corp on August 31, 2024 and sell it today you would earn a total of 57.00 from holding Osino Resources Corp or generate 68.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 83.42% |
| Values | Daily Returns |
Osino Resources Corp vs. Sandstorm Gold Ltd
Performance |
| Timeline |
| Osino Resources Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sandstorm Gold |
Osino Resources and Sandstorm Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osino Resources and Sandstorm Gold
The main advantage of trading using opposite Osino Resources and Sandstorm Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osino Resources position performs unexpectedly, Sandstorm 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 Sandstorm Gold will offset losses from the drop in Sandstorm Gold's long position.| Osino Resources vs. Minera Alamos | Osino Resources vs. Aurion Resources | Osino Resources vs. Minaurum Gold | Osino Resources vs. Rio2 Limited |
| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge Gold | Sandstorm Gold 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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