Correlation Between I 80 and Osisko Mining

Can any of the company-specific risk be diversified away by investing in both I 80 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 I 80 and Osisko Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between I 80 Gold Corp and Osisko Mining, you can compare the effects of market volatilities on I 80 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 I 80 with a short position of Osisko Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and Osisko Mining.

Diversification Opportunities for I 80 and Osisko Mining

0.0

Correlation Coefficient

I 80  Osisko Mining

Pay attention - limited upside

The 3 months correlation between IAUX and Osisko is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding I 80 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 I 80 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 I 80 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 I 80 i.e., I 80 and Osisko Mining go up and down completely randomly.

Pair Corralation between I 80 and Osisko Mining

If you would invest  52.00  in I 80 Gold Corp on December 20, 2024 and sell it today you would earn a total of  18.38  from holding I 80 Gold Corp or generate 35.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

I 80 Gold Corp  vs.  Osisko Mining

I 80 Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in I 80 Gold Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, I 80 showed solid returns over the last few months and may actually be approaching a breakup point.

Osisko Mining

Risk-Adjusted Performance

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 I 80 and Osisko Mining

The main advantage of trading using opposite I 80 and Osisko Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 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 I 80 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.