Correlation Between Kinross Gold and Osisko Gold

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Can any of the company-specific risk be diversified away by investing in both Kinross Gold and Osisko Gold 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 Kinross Gold and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinross Gold and Osisko Gold Ro, you can compare the effects of market volatilities on Kinross Gold and Osisko Gold 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 Kinross Gold with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinross Gold and Osisko Gold.

Diversification Opportunities for Kinross Gold and Osisko Gold

0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Kinross and Osisko is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold and Osisko Gold Ro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Gold Ro and Kinross 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 Kinross Gold are associated (or correlated) with Osisko Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Gold Ro has no effect on the direction of Kinross Gold i.e., Kinross Gold and Osisko Gold go up and down completely randomly.

Pair Corralation between Kinross Gold and Osisko Gold

Considering the 90-day investment horizon Kinross Gold is expected to generate 1.63 times more return on investment than Osisko Gold. However, Kinross Gold is 1.63 times more volatile than Osisko Gold Ro. It trades about -0.07 of its potential returns per unit of risk. Osisko Gold Ro is currently generating about -0.16 per unit of risk. If you would invest  981.00  in Kinross Gold on September 24, 2024 and sell it today you would lose (43.00) from holding Kinross Gold or give up 4.38% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Kinross Gold  vs.  Osisko Gold Ro

 Performance 
       Timeline  
Kinross Gold 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Kinross Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Kinross Gold is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
Osisko Gold Ro 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Osisko Gold Ro has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Osisko Gold is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Kinross Gold and Osisko Gold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kinross Gold and Osisko Gold

The main advantage of trading using opposite Kinross Gold and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold position performs unexpectedly, Osisko Gold 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 Gold will offset losses from the drop in Osisko Gold's long position.
The idea behind Kinross Gold and Osisko Gold Ro 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 Channel module to use Commodity Channel Index to analyze current equity momentum.

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