Correlation Between Osisko Metals and Graphex Group

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

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

Diversification Opportunities for Osisko Metals and Graphex Group

0.39

Correlation Coefficient

Osisko Metals  Graphex Group

Weak diversification

The 3 months correlation between Osisko and Graphex is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals Incorporated and Graphex Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphex Group Limited 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 Incorporated are associated (or correlated) with Graphex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphex Group Limited has no effect on the direction of Osisko Metals i.e., Osisko Metals and Graphex Group go up and down completely randomly.

Pair Corralation between Osisko Metals and Graphex Group

Assuming the 90 days horizon Osisko Metals is expected to generate 1.16 times less return on investment than Graphex Group. But when comparing it to its historical volatility, Osisko Metals Incorporated is 2.49 times less risky than Graphex Group. It trades about 0.15 of its potential returns per unit of risk. Graphex Group Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  21.00  in Graphex Group Limited on December 1, 2024 and sell it today you would earn a total of  2.00  from holding Graphex Group Limited or generate 9.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.77%
Values	Daily Returns

Osisko Metals Incorporated  vs.  Graphex Group Limited

Osisko Metals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Osisko Metals Incorporated are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Osisko Metals reported solid returns over the last few months and may actually be approaching a breakup point.

Graphex Group Limited

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Graphex Group Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Graphex Group showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Osisko Metals and Graphex Group

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

The idea behind Osisko Metals Incorporated and Graphex Group Limited 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.