Correlation Between Sandstorm Gold and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold and Osisko 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 Sandstorm Gold and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sandstorm Gold Ltd and Osisko Gold Ro, you can compare the effects of market volatilities on Sandstorm Gold and Osisko 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 Sandstorm Gold with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and Osisko Gold.
Diversification Opportunities for Sandstorm Gold and Osisko Gold
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sandstorm and Osisko is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and Osisko Gold Ro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Gold Ro and Sandstorm Gold 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 Sandstorm Gold Ltd are associated (or correlated) with Osisko Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Gold Ro has no effect on the direction of Sandstorm Gold i.e., Sandstorm Gold and Osisko Gold go up and down completely randomly.
Pair Corralation between Sandstorm Gold and Osisko Gold
Assuming the 90 days trading horizon Sandstorm Gold Ltd is expected to under-perform the Osisko Gold. In addition to that, Sandstorm Gold is 1.33 times more volatile than Osisko Gold Ro. It trades about -0.04 of its total potential returns per unit of risk. Osisko Gold Ro is currently generating about -0.05 per unit of volatility. If you would invest 2,887 in Osisko Gold Ro on August 27, 2024 and sell it today you would lose (76.00) from holding Osisko Gold Ro or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sandstorm Gold Ltd vs. Osisko Gold Ro
Performance |
| Timeline |
| Sandstorm Gold |
| Osisko Gold Ro |
Sandstorm Gold and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandstorm Gold and Osisko Gold
The main advantage of trading using opposite Sandstorm Gold and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandstorm Gold position performs unexpectedly, Osisko 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 Osisko Gold will offset losses from the drop in Osisko Gold's long position.| Sandstorm Gold vs. Osisko Gold Ro | Sandstorm Gold vs. Wheaton Precious Metals | Sandstorm Gold vs. Seabridge Gold | Sandstorm Gold vs. MAG Silver Corp |
| Osisko Gold vs. First Majestic Silver | Osisko Gold vs. Ivanhoe Energy | Osisko Gold 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |