Correlation Between Osisko Metals and Great Atlantic

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

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

Diversification Opportunities for Osisko Metals and Great Atlantic

-0.54

Correlation Coefficient

Osisko Metals  Great Atlantic

Excellent diversification

The 3 months correlation between Osisko and Great is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Great Atlantic Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Atlantic Resources and Osisko Metals 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 Osisko Metals are associated (or correlated) with Great Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Atlantic Resources has no effect on the direction of Osisko Metals i.e., Osisko Metals and Great Atlantic go up and down completely randomly.

Pair Corralation between Osisko Metals and Great Atlantic

Given the investment horizon of 90 days Osisko Metals is expected to generate 2.75 times less return on investment than Great Atlantic. But when comparing it to its historical volatility, Osisko Metals is 2.46 times less risky than Great Atlantic. It trades about 0.04 of its potential returns per unit of risk. Great Atlantic Resources is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  6.00  in Great Atlantic Resources on September 24, 2024 and sell it today you would earn a total of  0.00  from holding Great Atlantic Resources or generate 0.0% return on investment over 90 days.

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

Osisko Metals  vs.  Great Atlantic Resources

Osisko Metals

Risk-Adjusted Performance

11 of 100

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.

Great Atlantic Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Great Atlantic Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Great Atlantic is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Osisko Metals and Great Atlantic

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

The idea behind Osisko Metals and Great Atlantic Resources 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..