Correlation Between Graphex Group and Osisko Metals

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

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

Diversification Opportunities for Graphex Group and Osisko Metals

-0.12

Correlation Coefficient

Graphex Group  Osisko Metals

Good diversification

The 3 months correlation between Graphex and Osisko is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Graphex Group Limited and Osisko Metals Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and Graphex Group 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 Graphex Group Limited 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 Graphex Group i.e., Graphex Group and Osisko Metals go up and down completely randomly.

Pair Corralation between Graphex Group and Osisko Metals

Given the investment horizon of 90 days Graphex Group Limited is expected to generate 1.72 times more return on investment than Osisko Metals. However, Graphex Group is 1.72 times more volatile than Osisko Metals Incorporated. It trades about 0.07 of its potential returns per unit of risk. Osisko Metals Incorporated is currently generating about 0.08 per unit of risk. If you would invest  17.00  in Graphex Group Limited on September 12, 2024 and sell it today you would earn a total of  3.00  from holding Graphex Group Limited or generate 17.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Graphex Group Limited  vs.  Osisko Metals Incorporated

Graphex Group Limited

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Graphex Group Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, Graphex Group showed solid returns over the last few months and may actually be approaching a breakup point.

Osisko Metals

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Osisko Metals Incorporated are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Osisko Metals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Graphex Group and Osisko Metals

The main advantage of trading using opposite Graphex Group and Osisko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphex Group 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 Graphex Group Limited and Osisko Metals Incorporated 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 Anywhere module to track or share privately all of your investments from the convenience of any device.