Correlation Between Red Pine and Osisko Metals
Can any of the company-specific risk be diversified away by investing in both Red Pine 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 Red Pine and Osisko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Red Pine Exploration and Osisko Metals, you can compare the effects of market volatilities on Red Pine 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 Red Pine with a short position of Osisko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Pine and Osisko Metals.
Diversification Opportunities for Red Pine and Osisko Metals
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Red and Osisko is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Red Pine Exploration and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Red Pine 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 Red Pine Exploration 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 Red Pine i.e., Red Pine and Osisko Metals go up and down completely randomly.
Pair Corralation between Red Pine and Osisko Metals
Assuming the 90 days horizon Red Pine is expected to generate 5.56 times less return on investment than Osisko Metals. In addition to that, Red Pine is 1.04 times more volatile than Osisko Metals. It trades about 0.03 of its total potential returns per unit of risk. Osisko Metals is currently generating about 0.15 per unit of volatility. If you would invest 32.00 in Osisko Metals on December 27, 2024 and sell it today you would earn a total of 14.00 from holding Osisko Metals or generate 43.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Red Pine Exploration vs. Osisko Metals
Performance |
Timeline |
Red Pine Exploration |
Osisko Metals |
Red Pine and Osisko Metals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Red Pine and Osisko Metals
The main advantage of trading using opposite Red Pine and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Pine 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.Red Pine vs. Honey Badger Silver | Red Pine vs. Inventus Mining Corp | Red Pine vs. CANEX Metals | Red Pine vs. Ressources Minieres Radisson |
Osisko Metals vs. Volcanic Gold Mines | Osisko Metals vs. Wolfden Resources | Osisko Metals vs. Tarku Resources | Osisko Metals vs. Blue Star Gold |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |