Correlation Between Québec Nickel and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both Québec Nickel 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 Québec Nickel and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qubec Nickel Corp and Osisko Metals Incorporated, you can compare the effects of market volatilities on Québec Nickel 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 Québec Nickel with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Québec Nickel and Osisko Metals.
Diversification Opportunities for Québec Nickel and Osisko Metals
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Québec and Osisko is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Qubec Nickel Corp and Osisko Metals Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Québec Nickel 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 Qubec Nickel Corp 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 Québec Nickel i.e., Québec Nickel and Osisko Metals go up and down completely randomly.
Pair Corralation between Québec Nickel and Osisko Metals
Assuming the 90 days horizon Qubec Nickel Corp is expected to under-perform the Osisko Metals. In addition to that, Québec Nickel is 4.0 times more volatile than Osisko Metals Incorporated. It trades about -0.1 of its total potential returns per unit of risk. Osisko Metals Incorporated is currently generating about 0.12 per unit of volatility. If you would invest 16.00 in Osisko Metals Incorporated on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Osisko Metals Incorporated or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Qubec Nickel Corp vs. Osisko Metals Incorporated
Performance |
| Timeline |
| Qubec Nickel Corp |
| Osisko Metals |
Québec Nickel and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Québec Nickel and Osisko Metals
The main advantage of trading using opposite Québec Nickel and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Québec Nickel 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.| Québec Nickel vs. Norra Metals Corp | Québec Nickel vs. E79 Resources Corp | Québec Nickel vs. Voltage Metals Corp | Québec Nickel vs. Cantex Mine Development |
| Osisko Metals vs. C3 Metals | Osisko Metals vs. Syrah Resources Limited | Osisko Metals vs. Saint Jean Carbon | Osisko Metals vs. Volt Lithium 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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