Correlation Between PJX Resources and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both PJX Resources and Osisko Metals 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 PJX Resources and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PJX Resources and Osisko Metals, you can compare the effects of market volatilities on PJX Resources and Osisko Metals 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 PJX Resources with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of PJX Resources and Osisko Metals.
Diversification Opportunities for PJX Resources and Osisko Metals
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PJX and Osisko is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding PJX Resources and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and PJX 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 PJX Resources are associated (or correlated) with Osisko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Metals has no effect on the direction of PJX Resources i.e., PJX Resources and Osisko Metals go up and down completely randomly.
Pair Corralation between PJX Resources and Osisko Metals
Assuming the 90 days horizon PJX Resources is expected to generate 2.01 times less return on investment than Osisko Metals. In addition to that, PJX Resources is 2.29 times more volatile than Osisko Metals. It trades about 0.04 of its total potential returns per unit of risk. Osisko Metals is currently generating about 0.17 per unit of volatility. If you would invest 22.00 in Osisko Metals on October 26, 2024 and sell it today you would earn a total of 12.00 from holding Osisko Metals or generate 54.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PJX Resources vs. Osisko Metals
Performance |
| Timeline |
| PJX Resources |
| Osisko Metals |
PJX Resources and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PJX Resources and Osisko Metals
The main advantage of trading using opposite PJX Resources and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PJX Resources position performs unexpectedly, Osisko Metals 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 Osisko Metals will offset losses from the drop in Osisko Metals' long position.| PJX Resources vs. UnitedHealth Group CDR | PJX Resources vs. Reliq Health Technologies | PJX Resources vs. Highwood Asset Management | PJX Resources vs. DRI Healthcare Trust |
| Osisko Metals vs. First Majestic Silver | Osisko Metals vs. Ivanhoe Energy | Osisko Metals vs. Flinders Resources Limited | Osisko Metals vs. Orezone Gold 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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