Correlation Between Yellow Pages and Osisko Development

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

By analyzing existing cross correlation between Yellow Pages Limited and Osisko Development Corp, you can compare the effects of market volatilities on Yellow Pages and Osisko Development 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 Yellow Pages with a short position of Osisko Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yellow Pages and Osisko Development.

Diversification Opportunities for Yellow Pages and Osisko Development

-0.3

Correlation Coefficient

Yellow Pages  Osisko Development

Very good diversification

The 3 months correlation between Yellow and Osisko is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Yellow Pages Limited and Osisko Development Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Development Corp and Yellow Pages 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 Yellow Pages Limited are associated (or correlated) with Osisko Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Development Corp has no effect on the direction of Yellow Pages i.e., Yellow Pages and Osisko Development go up and down completely randomly.

Pair Corralation between Yellow Pages and Osisko Development

If you would invest (100.00) in Yellow Pages Limited on October 3, 2024 and sell it today you would earn a total of  100.00  from holding Yellow Pages Limited or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Yellow Pages Limited  vs.  Osisko Development Corp

Yellow Pages Limited

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Yellow Pages Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak basic indicators, Yellow Pages displayed solid returns over the last few months and may actually be approaching a breakup point.

Osisko Development Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Osisko Development Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Yellow Pages and Osisko Development

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

The idea behind Yellow Pages Limited and Osisko Development 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.