Correlation Between Osisko Metals and Perma Fix

Can any of the company-specific risk be diversified away by investing in both Osisko Metals and Perma Fix 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 Osisko Metals and Perma Fix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Osisko Metals and Perma Fix Environmental Services, you can compare the effects of market volatilities on Osisko Metals and Perma Fix 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 Osisko Metals with a short position of Perma Fix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and Perma Fix.

Diversification Opportunities for Osisko Metals and Perma Fix

-0.85

Correlation Coefficient

Osisko Metals  Perma Fix

Pay attention - limited upside

The 3 months correlation between Osisko and Perma is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Perma Fix Environmental Servic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perma Fix Environmental and Osisko 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 Osisko Metals are associated (or correlated) with Perma Fix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perma Fix Environmental has no effect on the direction of Osisko Metals i.e., Osisko Metals and Perma Fix go up and down completely randomly.

Pair Corralation between Osisko Metals and Perma Fix

Assuming the 90 days trading horizon Osisko Metals is expected to under-perform the Perma Fix. In addition to that, Osisko Metals is 1.8 times more volatile than Perma Fix Environmental Services. It trades about -0.07 of its total potential returns per unit of risk. Perma Fix Environmental Services is currently generating about 0.01 per unit of volatility. If you would invest  1,060  in Perma Fix Environmental Services on October 25, 2024 and sell it today you would earn a total of  0.00  from holding Perma Fix Environmental Services or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Osisko Metals  vs.  Perma Fix Environmental Servic

Osisko Metals

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Osisko Metals are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Osisko Metals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Perma Fix Environmental

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Perma Fix Environmental Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Osisko Metals and Perma Fix

The main advantage of trading using opposite Osisko Metals and Perma Fix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Metals position performs unexpectedly, Perma Fix 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 Perma Fix will offset losses from the drop in Perma Fix's long position.

The idea behind Osisko Metals and Perma Fix Environmental Services pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..