Correlation Between Osino Resources and Peloton Minerals

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

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

Diversification Opportunities for Osino Resources and Peloton Minerals

-0.03

Correlation Coefficient

Osino Resources  Peloton Minerals

Good diversification

The 3 months correlation between Osino and Peloton is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Osino Resources Corp and Peloton Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peloton Minerals and Osino Resources 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 Osino Resources Corp are associated (or correlated) with Peloton Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peloton Minerals has no effect on the direction of Osino Resources i.e., Osino Resources and Peloton Minerals go up and down completely randomly.

Pair Corralation between Osino Resources and Peloton Minerals

Assuming the 90 days horizon Osino Resources is expected to generate 1.31 times less return on investment than Peloton Minerals. But when comparing it to its historical volatility, Osino Resources Corp is 2.79 times less risky than Peloton Minerals. It trades about 0.08 of its potential returns per unit of risk. Peloton Minerals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  7.89  in Peloton Minerals on September 4, 2024 and sell it today you would lose (1.69) from holding Peloton Minerals or give up 21.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	87.1%
Values	Daily Returns

Osino Resources Corp  vs.  Peloton Minerals

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.

Peloton Minerals

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Peloton Minerals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Peloton Minerals may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Osino Resources and Peloton Minerals

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

The idea behind Osino Resources Corp and Peloton Minerals 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.