Correlation Between Osino Resources and Osisko Gold

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Can any of the company-specific risk be diversified away by investing in both Osino Resources and Osisko 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 Osino Resources and Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osino Resources Corp and Osisko Gold Ro, you can compare the effects of market volatilities on Osino Resources and Osisko 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 Osino Resources with a short position of Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osino Resources and Osisko Gold.

Diversification Opportunities for Osino Resources and Osisko Gold

0.01
  Correlation Coefficient

Significant diversification

The 3 months correlation between Osino and Osisko is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Osino Resources Corp and Osisko Gold Ro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Gold Ro and Osino Resources 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 Osino Resources Corp are associated (or correlated) with Osisko Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Gold Ro has no effect on the direction of Osino Resources i.e., Osino Resources and Osisko Gold go up and down completely randomly.

Pair Corralation between Osino Resources and Osisko Gold

Assuming the 90 days horizon Osino Resources Corp is expected to generate 0.61 times more return on investment than Osisko Gold. However, Osino Resources Corp is 1.65 times less risky than Osisko Gold. It trades about 0.15 of its potential returns per unit of risk. Osisko Gold Ro is currently generating about 0.08 per unit of risk. If you would invest  128.00  in Osino Resources Corp on September 15, 2024 and sell it today you would earn a total of  12.00  from holding Osino Resources Corp or generate 9.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy43.65%
ValuesDaily Returns

Osino Resources Corp  vs.  Osisko Gold Ro

 Performance 
       Timeline  
Osino Resources Corp 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Osino Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Osino Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Osisko Gold Ro 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Osisko Gold Ro are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Osisko Gold may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Osino Resources and Osisko Gold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Osino Resources and Osisko Gold

The main advantage of trading using opposite Osino Resources and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osino Resources position performs unexpectedly, Osisko 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 Osisko Gold will offset losses from the drop in Osisko Gold's long position.
The idea behind Osino Resources Corp and Osisko Gold Ro 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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