Correlation Between Almaden Minerals and Osisko Gold

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

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

Diversification Opportunities for Almaden Minerals and Osisko Gold

0.11

Correlation Coefficient

Almaden Minerals  Osisko Gold

Average diversification

The 3 months correlation between Almaden and Osisko is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Almaden Minerals and Osisko Gold Ro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Gold Ro and Almaden Minerals 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 Almaden Minerals are associated (or correlated) with Osisko Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Gold Ro has no effect on the direction of Almaden Minerals i.e., Almaden Minerals and Osisko Gold go up and down completely randomly.

Pair Corralation between Almaden Minerals and Osisko Gold

Considering the 90-day investment horizon Almaden Minerals is expected to under-perform the Osisko Gold. In addition to that, Almaden Minerals is 43.57 times more volatile than Osisko Gold Ro. It trades about -0.71 of its total potential returns per unit of risk. Osisko Gold Ro is currently generating about -0.09 per unit of volatility. If you would invest  1,619  in Osisko Gold Ro on February 4, 2024 and sell it today you would lose (59.00) from holding Osisko Gold Ro or give up 3.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	8.7%
Values	Daily Returns

Almaden Minerals  vs.  Osisko Gold Ro

Almaden Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Almaden Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Osisko Gold Ro

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Osisko Gold Ro are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Osisko Gold may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Almaden Minerals and Osisko Gold

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

The idea behind Almaden Minerals and Osisko Gold Ro 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.