Correlation Between Red Pine and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both Red Pine 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 Red Pine and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Red Pine Exploration and Osisko Metals, you can compare the effects of market volatilities on Red Pine 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 Red Pine with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Pine and Osisko Metals.
Diversification Opportunities for Red Pine and Osisko Metals
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Red and Osisko is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Red Pine Exploration and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Red Pine 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 Red Pine Exploration 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 Red Pine i.e., Red Pine and Osisko Metals go up and down completely randomly.
Pair Corralation between Red Pine and Osisko Metals
Assuming the 90 days horizon Red Pine Exploration is expected to under-perform the Osisko Metals. But the stock apears to be less risky and, when comparing its historical volatility, Red Pine Exploration is 1.59 times less risky than Osisko Metals. The stock trades about -0.11 of its potential returns per unit of risk. The Osisko Metals is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Osisko Metals on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Osisko Metals or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Red Pine Exploration vs. Osisko Metals
Performance |
| Timeline |
| Red Pine Exploration |
| Osisko Metals |
Red Pine and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Pine and Osisko Metals
The main advantage of trading using opposite Red Pine and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Pine 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.| Red Pine vs. Honey Badger Silver | Red Pine vs. Inventus Mining Corp | Red Pine vs. CANEX Metals | Red Pine vs. Ressources Minieres Radisson |
| Osisko Metals vs. Foraco International SA | Osisko Metals vs. Geodrill Limited | Osisko Metals vs. Major Drilling Group | Osisko Metals vs. Bri Chem 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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