Correlation Between Osisko Gold and New Gold
Can any of the company-specific risk be diversified away by investing in both Osisko Gold and New 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 Osisko Gold and New Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osisko Gold Ro and New Gold, you can compare the effects of market volatilities on Osisko Gold and New 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 Osisko Gold with a short position of New Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osisko Gold and New Gold.
Diversification Opportunities for Osisko Gold and New Gold
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Osisko and New is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Gold Ro and New Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Gold and Osisko Gold 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 Gold Ro are associated (or correlated) with New Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Gold has no effect on the direction of Osisko Gold i.e., Osisko Gold and New Gold go up and down completely randomly.
Pair Corralation between Osisko Gold and New Gold
Assuming the 90 days horizon Osisko Gold is expected to generate 2.05 times less return on investment than New Gold. But when comparing it to its historical volatility, Osisko Gold Ro is 1.8 times less risky than New Gold. It trades about 0.1 of its potential returns per unit of risk. New Gold is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 190.00 in New Gold on August 16, 2025 and sell it today you would earn a total of 831.00 from holding New Gold or generate 437.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osisko Gold Ro vs. New Gold
Performance |
| Timeline |
| Osisko Gold Ro |
| New Gold |
Osisko Gold and New Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osisko Gold and New Gold
The main advantage of trading using opposite Osisko Gold and New Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osisko Gold position performs unexpectedly, New 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 New Gold will offset losses from the drop in New Gold's long position.| Osisko Gold vs. Artemis Gold | Osisko Gold vs. New Gold | Osisko Gold vs. B2Gold Corp | Osisko Gold vs. Triple Flag Precious |
| New Gold vs. B2Gold Corp | New Gold vs. OceanaGold | New Gold vs. Artemis Gold | New Gold vs. Eldorado Gold Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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