Correlation Between Saga Metals and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both Saga Metals 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 Saga Metals and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saga Metals Corp and Osisko Metals, you can compare the effects of market volatilities on Saga Metals 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 Saga Metals with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saga Metals and Osisko Metals.
Diversification Opportunities for Saga Metals and Osisko Metals
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saga and Osisko is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Saga Metals Corp and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Saga Metals 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 Saga Metals 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 Saga Metals i.e., Saga Metals and Osisko Metals go up and down completely randomly.
Pair Corralation between Saga Metals and Osisko Metals
Assuming the 90 days trading horizon Saga Metals Corp is expected to under-perform the Osisko Metals. In addition to that, Saga Metals is 1.59 times more volatile than Osisko Metals. It trades about 0.0 of its total potential returns per unit of risk. Osisko Metals is currently generating about 0.06 per unit of volatility. If you would invest 19.00 in Osisko Metals on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Osisko Metals or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.33% |
| Values | Daily Returns |
Saga Metals Corp vs. Osisko Metals
Performance |
| Timeline |
| Saga Metals Corp |
| Osisko Metals |
Saga Metals and Osisko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saga Metals and Osisko Metals
The main advantage of trading using opposite Saga Metals and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saga Metals 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.| Saga Metals vs. Pembina Pipeline Corp | Saga Metals vs. Arizona Gold Silver | Saga Metals vs. Endeavour Silver Corp | Saga Metals vs. MAG Silver Corp |
| Osisko Metals vs. Algoma Steel Group | Osisko Metals vs. Champion Iron | Osisko Metals vs. International Zeolite Corp | Osisko Metals vs. European Residential Real |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |