Correlation Between JAPAN AIRLINES and Osisko Metals

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

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

Diversification Opportunities for JAPAN AIRLINES and Osisko Metals

0.21

Correlation Coefficient

JAPAN AIRLINES  Osisko Metals

Modest diversification

The 3 months correlation between JAPAN and Osisko is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding JAPAN AIRLINES and Osisko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Metals and JAPAN AIRLINES 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 JAPAN AIRLINES are associated (or correlated) with Osisko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Metals has no effect on the direction of JAPAN AIRLINES i.e., JAPAN AIRLINES and Osisko Metals go up and down completely randomly.

Pair Corralation between JAPAN AIRLINES and Osisko Metals

Assuming the 90 days trading horizon JAPAN AIRLINES is expected to generate 0.46 times more return on investment than Osisko Metals. However, JAPAN AIRLINES is 2.19 times less risky than Osisko Metals. It trades about 0.1 of its potential returns per unit of risk. Osisko Metals is currently generating about -0.04 per unit of risk. If you would invest  1,630  in JAPAN AIRLINES on May 6, 2025 and sell it today you would earn a total of  150.00  from holding JAPAN AIRLINES or generate 9.2% return on investment over 90 days.

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

JAPAN AIRLINES  vs.  Osisko Metals

JAPAN AIRLINES

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JAPAN AIRLINES are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile essential indicators, JAPAN AIRLINES may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Osisko Metals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Osisko Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with JAPAN AIRLINES and Osisko Metals

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

The idea behind JAPAN AIRLINES and Osisko Metals 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.