Correlation Between Vista Gold and Osisko Development
Can any of the company-specific risk be diversified away by investing in both Vista Gold and Osisko Development 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 Vista Gold and Osisko Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vista Gold and Osisko Development Corp, you can compare the effects of market volatilities on Vista Gold and Osisko Development 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 Vista Gold with a short position of Osisko Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Gold and Osisko Development.
Diversification Opportunities for Vista Gold and Osisko Development
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vista and Osisko is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Vista Gold and Osisko Development Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Development Corp and Vista 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 Vista Gold are associated (or correlated) with Osisko Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Development Corp has no effect on the direction of Vista Gold i.e., Vista Gold and Osisko Development go up and down completely randomly.
Pair Corralation between Vista Gold and Osisko Development
Considering the 90-day investment horizon Vista Gold is expected to generate 0.43 times more return on investment than Osisko Development. However, Vista Gold is 2.3 times less risky than Osisko Development. It trades about -0.19 of its potential returns per unit of risk. Osisko Development Corp is currently generating about -0.11 per unit of risk. If you would invest 70.00 in Vista Gold on August 24, 2024 and sell it today you would lose (11.00) from holding Vista Gold or give up 15.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vista Gold vs. Osisko Development Corp
Performance |
| Timeline |
| Vista Gold |
| Osisko Development Corp |
Vista Gold and Osisko Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Gold and Osisko Development
The main advantage of trading using opposite Vista Gold and Osisko Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Gold position performs unexpectedly, Osisko Development 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 Development will offset losses from the drop in Osisko Development's long position.| Vista Gold vs. International Tower Hill | Vista Gold vs. Harmony Gold Mining | Vista Gold vs. Seabridge Gold | Vista Gold vs. IAMGold |
| Osisko Development vs. Gungnir Resources | Osisko Development vs. Omineca Mining and | Osisko Development vs. Sitka Gold Corp | Osisko Development vs. Dakota 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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