Correlation Between Ascot Resources and Osisko Development

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

By analyzing existing cross correlation between Ascot Resources and Osisko Development Corp, you can compare the effects of market volatilities on Ascot Resources 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 Ascot Resources with a short position of Osisko Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascot Resources and Osisko Development.

Diversification Opportunities for Ascot Resources and Osisko Development

-0.09

Correlation Coefficient

Ascot Resources  Osisko Development

Good diversification

The 3 months correlation between Ascot and Osisko is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ascot Resources 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 Ascot Resources 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 Ascot Resources 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 Ascot Resources i.e., Ascot Resources and Osisko Development go up and down completely randomly.

Pair Corralation between Ascot Resources and Osisko Development

Assuming the 90 days trading horizon Ascot Resources is expected to under-perform the Osisko Development. In addition to that, Ascot Resources is 1.02 times more volatile than Osisko Development Corp. It trades about -0.14 of its total potential returns per unit of risk. Osisko Development Corp is currently generating about -0.1 per unit of volatility. If you would invest  361.00  in Osisko Development Corp on September 22, 2024 and sell it today you would lose (115.00) from holding Osisko Development Corp or give up 31.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.78%
Values	Daily Returns

Ascot Resources  vs.  Osisko Development Corp

Ascot Resources

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ascot Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Ascot Resources displayed solid returns over the last few months and may actually be approaching a breakup point.

Osisko Development Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Osisko Development Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Osisko Development is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Ascot Resources and Osisko Development

The main advantage of trading using opposite Ascot Resources and Osisko Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascot Resources 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.

The idea behind Ascot Resources and Osisko Development Corp 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.