Correlation Between Osisko Gold and Dakota Gold

Can any of the company-specific risk be diversified away by investing in both Osisko Gold and Dakota 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 Dakota 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 Dakota Gold Corp, you can compare the effects of market volatilities on Osisko Gold and Dakota 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 Dakota Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and Dakota Gold.

Diversification Opportunities for Osisko Gold and Dakota Gold

0.63

Correlation Coefficient

Osisko Gold  Dakota Gold

Poor diversification

The 3 months correlation between Osisko and Dakota is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Dakota Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dakota Gold Corp 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 Dakota Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dakota Gold Corp has no effect on the direction of Osisko Gold i.e., Osisko Gold and Dakota Gold go up and down completely randomly.

Pair Corralation between Osisko Gold and Dakota Gold

Allowing for the 90-day total investment horizon Osisko Gold is expected to generate 5.2 times less return on investment than Dakota Gold. But when comparing it to its historical volatility, Osisko Gold Ro is 1.38 times less risky than Dakota Gold. It trades about 0.06 of its potential returns per unit of risk. Dakota Gold Corp is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  210.00  in Dakota Gold Corp on October 20, 2024 and sell it today you would earn a total of  18.00  from holding Dakota Gold Corp or generate 8.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.0%
Values	Daily Returns

Osisko Gold Ro  vs.  Dakota Gold Corp

Osisko Gold Ro

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Osisko Gold Ro has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Dakota Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dakota Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Dakota Gold is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Osisko Gold and Dakota Gold

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

The idea behind Osisko Gold Ro and Dakota Gold 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.