Correlation Between Osisko Gold and Seabridge Gold

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

Diversification Opportunities for Osisko Gold and Seabridge Gold

0.49

Correlation Coefficient

Osisko Gold  Seabridge Gold

Very weak diversification

The 3 months correlation between Osisko and Seabridge is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and Seabridge Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seabridge 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 Seabridge Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seabridge Gold has no effect on the direction of Osisko Gold i.e., Osisko Gold and Seabridge Gold go up and down completely randomly.

Pair Corralation between Osisko Gold and Seabridge Gold

Allowing for the 90-day total investment horizon Osisko Gold Ro is expected to generate 0.53 times more return on investment than Seabridge Gold. However, Osisko Gold Ro is 1.9 times less risky than Seabridge Gold. It trades about 0.14 of its potential returns per unit of risk. Seabridge Gold is currently generating about 0.04 per unit of risk. If you would invest  1,804  in Osisko Gold Ro on December 28, 2024 and sell it today you would earn a total of  288.00  from holding Osisko Gold Ro or generate 15.96% return on investment over 90 days.

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

Osisko Gold Ro  vs.  Seabridge Gold

Osisko Gold Ro

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Osisko Gold Ro are ranked lower than 10 (%) 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.

Seabridge Gold

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Seabridge Gold are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal basic indicators, Seabridge Gold may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Osisko Gold and Seabridge Gold

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

The idea behind Osisko Gold Ro and Seabridge 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.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.