Correlation Between Osisko Gold and Asante Gold

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

By analyzing existing cross correlation between Osisko Gold Ro and Asante Gold, you can compare the effects of market volatilities on Osisko Gold and Asante 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 Osisko Gold with a short position of Asante Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Asante Gold.

Diversification Opportunities for Osisko Gold and Asante Gold

-0.05

Correlation Coefficient

Osisko Gold  Asante Gold

Good diversification

The 3 months correlation between Osisko and Asante is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Asante Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asante Gold and Osisko 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 Osisko Gold Ro are associated (or correlated) with Asante Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asante Gold has no effect on the direction of Osisko Gold i.e., Osisko Gold and Asante Gold go up and down completely randomly.

Pair Corralation between Osisko Gold and Asante Gold

Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to generate 0.51 times more return on investment than Asante Gold. However, Osisko Gold Ro is 1.94 times less risky than Asante Gold. It trades about 0.04 of its potential returns per unit of risk. Asante Gold is currently generating about -0.02 per unit of risk. If you would invest  1,590  in Osisko Gold Ro on August 31, 2024 and sell it today you would earn a total of  348.00  from holding Osisko Gold Ro or generate 21.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.73%
Values	Daily Returns

Osisko Gold Ro  vs.  Asante Gold

Osisko Gold Ro

Risk-Adjusted Performance

11 of 100

Good

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

Asante Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asante Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Osisko Gold and Asante Gold

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

The idea behind Osisko Gold Ro and Asante Gold 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 Directory module to find actively traded commodities issued by global exchanges.