Correlation Between Osisko Metals and Sun Life

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

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

Diversification Opportunities for Osisko Metals and Sun Life

-0.47

Correlation Coefficient

Osisko Metals  Sun Life

Very good diversification

The 3 months correlation between Osisko and Sun is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Sun Life Non in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Non 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 Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Non has no effect on the direction of Osisko Metals i.e., Osisko Metals and Sun Life go up and down completely randomly.

Pair Corralation between Osisko Metals and Sun Life

Given the investment horizon of 90 days Osisko Metals is expected to generate 5.32 times more return on investment than Sun Life. However, Osisko Metals is 5.32 times more volatile than Sun Life Non. It trades about 0.15 of its potential returns per unit of risk. Sun Life Non is currently generating about 0.03 per unit of risk. If you would invest  32.00  in Osisko Metals on December 26, 2024 and sell it today you would earn a total of  14.00  from holding Osisko Metals or generate 43.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Osisko Metals  vs.  Sun Life Non

Osisko Metals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Osisko Metals are ranked lower than 11 (%) 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.

Sun Life Non

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Life Non are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Sun Life is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Osisko Metals and Sun Life

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

The idea behind Osisko Metals and Sun Life Non 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.