Correlation Between Osisko Metals and Shenandoah Telecommunicatio

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

By analyzing existing cross correlation between Osisko Metals and Shenandoah Telecommunications, you can compare the effects of market volatilities on Osisko Metals and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Metals and Shenandoah Telecommunicatio.

Diversification Opportunities for Osisko Metals and Shenandoah Telecommunicatio

-0.57

Correlation Coefficient

Osisko Metals  Shenandoah Telecommunicatio

Excellent diversification

The 3 months correlation between Osisko and Shenandoah is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Shenandoah Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenandoah Telecommunicatio has no effect on the direction of Osisko Metals i.e., Osisko Metals and Shenandoah Telecommunicatio go up and down completely randomly.

Pair Corralation between Osisko Metals and Shenandoah Telecommunicatio

Assuming the 90 days trading horizon Osisko Metals is expected to generate 1.05 times more return on investment than Shenandoah Telecommunicatio. However, Osisko Metals is 1.05 times more volatile than Shenandoah Telecommunications. It trades about 0.2 of its potential returns per unit of risk. Shenandoah Telecommunications is currently generating about -0.08 per unit of risk. If you would invest  14.00  in Osisko Metals on October 26, 2024 and sell it today you would earn a total of  8.00  from holding Osisko Metals or generate 57.14% return on investment over 90 days.

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

Osisko Metals  vs.  Shenandoah Telecommunications

Osisko Metals

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Osisko Metals are ranked lower than 16 (%) 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.

Shenandoah Telecommunicatio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shenandoah Telecommunications 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 Shenandoah Telecommunicatio

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

The idea behind Osisko Metals and Shenandoah Telecommunications 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.