Correlation Between Osisko Metals and Mammoth Resources

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

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

Diversification Opportunities for Osisko Metals and Mammoth Resources

-0.46

Correlation Coefficient

Osisko Metals  Mammoth Resources

Very good diversification

The 3 months correlation between Osisko and Mammoth is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Mammoth Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mammoth Resources Corp 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 Mammoth Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mammoth Resources Corp has no effect on the direction of Osisko Metals i.e., Osisko Metals and Mammoth Resources go up and down completely randomly.

Pair Corralation between Osisko Metals and Mammoth Resources

Given the investment horizon of 90 days Osisko Metals is expected to generate 2.33 times less return on investment than Mammoth Resources. But when comparing it to its historical volatility, Osisko Metals is 2.93 times less risky than Mammoth Resources. It trades about 0.08 of its potential returns per unit of risk. Mammoth Resources Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1.50  in Mammoth Resources Corp on October 5, 2024 and sell it today you would earn a total of  0.00  from holding Mammoth Resources Corp or generate 0.0% return on investment over 90 days.

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

Osisko Metals  vs.  Mammoth Resources Corp

Osisko Metals

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Osisko Metals are ranked lower than 14 (%) 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.

Mammoth Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mammoth Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Mammoth Resources 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 Osisko Metals and Mammoth Resources

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

The idea behind Osisko Metals and Mammoth Resources 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.

Check out your portfolio center.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.