Correlation Between Omineca Mining and Osisko Development

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

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

Diversification Opportunities for Omineca Mining and Osisko Development

0.39

Correlation Coefficient

Omineca Mining  Osisko Development

Weak diversification

The 3 months correlation between Omineca and Osisko is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Omineca Mining and 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 Omineca Mining 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 Omineca Mining and 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 Omineca Mining i.e., Omineca Mining and Osisko Development go up and down completely randomly.

Pair Corralation between Omineca Mining and Osisko Development

Assuming the 90 days horizon Omineca Mining and is expected to under-perform the Osisko Development. In addition to that, Omineca Mining is 1.62 times more volatile than Osisko Development Corp. It trades about -0.03 of its total potential returns per unit of risk. Osisko Development Corp is currently generating about -0.02 per unit of volatility. If you would invest  210.00  in Osisko Development Corp on September 13, 2024 and sell it today you would lose (32.00) from holding Osisko Development Corp or give up 15.24% of portfolio value over 90 days.

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

Omineca Mining and  vs.  Osisko Development Corp

Omineca Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Omineca Mining and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 fairly stable fundamental indicators, Osisko Development is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Omineca Mining and Osisko Development

The main advantage of trading using opposite Omineca Mining and Osisko Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omineca Mining 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 Omineca Mining and 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..