Correlation Between International Tower and Osino Resources

Can any of the company-specific risk be diversified away by investing in both International Tower and Osino Resources 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 International Tower and Osino Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between International Tower Hill and Osino Resources Corp, you can compare the effects of market volatilities on International Tower and Osino Resources 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 International Tower with a short position of Osino Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Tower and Osino Resources.

Diversification Opportunities for International Tower and Osino Resources

-0.42

Correlation Coefficient

International Tower  Osino Resources

Very good diversification

The 3 months correlation between International and Osino is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding International Tower Hill and Osino Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osino Resources Corp and International Tower 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 International Tower Hill are associated (or correlated) with Osino Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osino Resources Corp has no effect on the direction of International Tower i.e., International Tower and Osino Resources go up and down completely randomly.

Pair Corralation between International Tower and Osino Resources

Considering the 90-day investment horizon International Tower is expected to generate 1.4 times less return on investment than Osino Resources. In addition to that, International Tower is 1.66 times more volatile than Osino Resources Corp. It trades about 0.05 of its total potential returns per unit of risk. Osino Resources Corp is currently generating about 0.12 per unit of volatility. If you would invest  74.00  in Osino Resources Corp on September 15, 2024 and sell it today you would earn a total of  66.00  from holding Osino Resources Corp or generate 89.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	73.61%
Values	Daily Returns

International Tower Hill  vs.  Osino Resources Corp

International Tower Hill

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days International Tower Hill has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical indicators, International Tower is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Osino Resources Corp

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with International Tower and Osino Resources

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

The idea behind International Tower Hill and Osino Resources 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.