Correlation Between Ressources Minieres and Osisko Metals

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

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

Diversification Opportunities for Ressources Minieres and Osisko Metals

-0.4

Correlation Coefficient

Ressources Minieres  Osisko Metals

Very good diversification

The 3 months correlation between Ressources and Osisko is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ressources Minieres Radisson and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Ressources Minieres 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 Ressources Minieres Radisson are associated (or correlated) with Osisko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Metals has no effect on the direction of Ressources Minieres i.e., Ressources Minieres and Osisko Metals go up and down completely randomly.

Pair Corralation between Ressources Minieres and Osisko Metals

Assuming the 90 days horizon Ressources Minieres is expected to generate 5.68 times less return on investment than Osisko Metals. But when comparing it to its historical volatility, Ressources Minieres Radisson is 1.22 times less risky than Osisko Metals. It trades about 0.03 of its potential returns per unit of risk. Osisko Metals is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  33.00  in Osisko Metals on December 24, 2024 and sell it today you would earn a total of  15.00  from holding Osisko Metals or generate 45.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Ressources Minieres Radisson  vs.  Osisko Metals

Ressources Minieres

Risk-Adjusted Performance

Weak

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

Osisko Metals

Risk-Adjusted Performance

Good

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

Pair Trading with Ressources Minieres and Osisko Metals

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

The idea behind Ressources Minieres Radisson and Osisko Metals 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.