Correlation Between Visa and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Osisko Gold Ro, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Osisko Gold.
Diversification Opportunities for Visa and Osisko Gold
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Visa and Osisko is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A 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 Visa 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 Visa Class A 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 Visa i.e., Visa and Osisko Gold go up and down completely randomly.
Pair Corralation between Visa and Osisko Gold
Taking into account the 90-day investment horizon Visa is expected to generate 1.61 times less return on investment than Osisko Gold. But when comparing it to its historical volatility, Visa Class A is 1.74 times less risky than Osisko Gold. It trades about 0.09 of its potential returns per unit of risk. Osisko Gold Ro is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,442 in Osisko Gold Ro on August 24, 2024 and sell it today you would earn a total of 544.00 from holding Osisko Gold Ro or generate 37.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Visa Class A vs. Osisko Gold Ro
Performance |
| Timeline |
| Visa Class A |
| Osisko Gold Ro |
Visa and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Osisko Gold
The main advantage of trading using opposite Visa and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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