Correlation Between Westlake Chemical and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both Westlake Chemical 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 Westlake Chemical and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westlake Chemical Partners and Osisko Gold Ro, you can compare the effects of market volatilities on Westlake Chemical 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 Westlake Chemical with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westlake Chemical and Osisko Gold.
Diversification Opportunities for Westlake Chemical and Osisko Gold
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Westlake and Osisko is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Westlake Chemical Partners 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 Westlake Chemical 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 Westlake Chemical Partners 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 Westlake Chemical i.e., Westlake Chemical and Osisko Gold go up and down completely randomly.
Pair Corralation between Westlake Chemical and Osisko Gold
Given the investment horizon of 90 days Westlake Chemical Partners is expected to generate 0.39 times more return on investment than Osisko Gold. However, Westlake Chemical Partners is 2.58 times less risky than Osisko Gold. It trades about 0.27 of its potential returns per unit of risk. Osisko Gold Ro is currently generating about -0.08 per unit of risk. If you would invest 2,188 in Westlake Chemical Partners on November 1, 2024 and sell it today you would earn a total of 250.00 from holding Westlake Chemical Partners or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westlake Chemical Partners vs. Osisko Gold Ro
Performance |
| Timeline |
| Westlake Chemical |
| Osisko Gold Ro |
Westlake Chemical and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westlake Chemical and Osisko Gold
The main advantage of trading using opposite Westlake Chemical and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westlake Chemical 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.| Westlake Chemical vs. Valhi Inc | Westlake Chemical vs. Huntsman | Westlake Chemical vs. Lsb Industries | Westlake Chemical vs. Green Plains Renewable |
| Osisko Gold vs. Wheaton Precious Metals | Osisko Gold vs. Franco Nevada | Osisko Gold vs. Royal Gold | Osisko Gold vs. Fortuna Silver Mines |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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