Correlation Between Osisko Gold and New Gold

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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 Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Osisko Gold Ro  vs.  New Gold

 Performance 
       Timeline  
Osisko Gold Ro 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
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. In spite of very abnormal basic indicators, Osisko Gold may actually be approaching a critical reversion point that can send shares even higher in December 2025.
New Gold 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in New Gold are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, New Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind Osisko Gold Ro and New Gold 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.
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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