Correlation Between Osisko Metals and Dream Office

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

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

Diversification Opportunities for Osisko Metals and Dream Office

-0.33

Correlation Coefficient

Osisko Metals  Dream Office

Very good diversification

The 3 months correlation between Osisko and Dream is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Dream Office Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Office Real 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 Dream Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Office Real has no effect on the direction of Osisko Metals i.e., Osisko Metals and Dream Office go up and down completely randomly.

Pair Corralation between Osisko Metals and Dream Office

Given the investment horizon of 90 days Osisko Metals is expected to generate 2.42 times more return on investment than Dream Office. However, Osisko Metals is 2.42 times more volatile than Dream Office Real. It trades about 0.14 of its potential returns per unit of risk. Dream Office Real is currently generating about 0.03 per unit of risk. If you would invest  33.00  in Osisko Metals on December 28, 2024 and sell it today you would earn a total of  13.00  from holding Osisko Metals or generate 39.39% return on investment over 90 days.

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

Osisko Metals  vs.  Dream Office Real

Osisko Metals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Osisko Metals are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Osisko Metals showed solid returns over the last few months and may actually be approaching a breakup point.

Dream Office Real

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dream Office Real are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Dream Office is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Osisko Metals and Dream Office

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

The idea behind Osisko Metals and Dream Office Real 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.