Correlation Between Osisko Mining and SPDR Portfolio
Can any of the company-specific risk be diversified away by investing in both Osisko Mining and SPDR Portfolio 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 Mining and SPDR Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Mining and SPDR Portfolio SP, you can compare the effects of market volatilities on Osisko Mining and SPDR Portfolio 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 Mining with a short position of SPDR Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Mining and SPDR Portfolio.
Diversification Opportunities for Osisko Mining and SPDR Portfolio
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Osisko and SPDR is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Mining and SPDR Portfolio SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio SP and Osisko 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 Osisko Mining are associated (or correlated) with SPDR Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Portfolio SP has no effect on the direction of Osisko Mining i.e., Osisko Mining and SPDR Portfolio go up and down completely randomly.
Pair Corralation between Osisko Mining and SPDR Portfolio
Assuming the 90 days horizon Osisko Mining is expected to generate 3.06 times more return on investment than SPDR Portfolio. However, Osisko Mining is 3.06 times more volatile than SPDR Portfolio SP. It trades about 0.07 of its potential returns per unit of risk. SPDR Portfolio SP is currently generating about -0.06 per unit of risk. If you would invest 207.00 in Osisko Mining on January 18, 2024 and sell it today you would earn a total of 7.00 from holding Osisko Mining or generate 3.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Osisko Mining vs. SPDR Portfolio SP
Performance |
Timeline |
Osisko Mining |
SPDR Portfolio SP |
Osisko Mining and SPDR Portfolio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Osisko Mining and SPDR Portfolio
The main advantage of trading using opposite Osisko Mining and SPDR Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Mining position performs unexpectedly, SPDR Portfolio 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 SPDR Portfolio will offset losses from the drop in SPDR Portfolio's long position.Osisko Mining vs. Royce Opportunity Fund | Osisko Mining vs. Oxford Biomedica plc | Osisko Mining vs. HP Inc | Osisko Mining vs. Forte Biosciences |
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Check out your portfolio center.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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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