Correlation Between Cassiar Gold and Osisko Mining

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

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

Diversification Opportunities for Cassiar Gold and Osisko Mining

-0.36

Correlation Coefficient

Cassiar Gold  Osisko Mining

Very good diversification

The 3 months correlation between Cassiar and Osisko is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cassiar Gold Corp and Osisko Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Mining and Cassiar 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 Cassiar Gold Corp are associated (or correlated) with Osisko Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Mining has no effect on the direction of Cassiar Gold i.e., Cassiar Gold and Osisko Mining go up and down completely randomly.

Pair Corralation between Cassiar Gold and Osisko Mining

Assuming the 90 days horizon Cassiar Gold Corp is expected to under-perform the Osisko Mining. In addition to that, Cassiar Gold is 1.09 times more volatile than Osisko Mining. It trades about -0.03 of its total potential returns per unit of risk. Osisko Mining is currently generating about 0.04 per unit of volatility. If you would invest  251.00  in Osisko Mining on October 7, 2024 and sell it today you would earn a total of  100.00  from holding Osisko Mining or generate 39.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.93%
Values	Daily Returns

Cassiar Gold Corp  vs.  Osisko Mining

Cassiar Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cassiar Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Osisko Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Osisko Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Osisko Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cassiar Gold and Osisko Mining

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

The idea behind Cassiar Gold Corp and Osisko Mining 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 Commodity Directory module to find actively traded commodities issued by global exchanges.