Correlation Between Osisko Metals and Brookfield Asset

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

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

Diversification Opportunities for Osisko Metals and Brookfield Asset

0.43

Correlation Coefficient

Osisko Metals  Brookfield Asset

Very weak diversification

The 3 months correlation between Osisko and Brookfield is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Brookfield Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Asset Man and Osisko Metals 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 Metals are associated (or correlated) with Brookfield Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Asset Man has no effect on the direction of Osisko Metals i.e., Osisko Metals and Brookfield Asset go up and down completely randomly.

Pair Corralation between Osisko Metals and Brookfield Asset

Given the investment horizon of 90 days Osisko Metals is expected to generate 4.74 times more return on investment than Brookfield Asset. However, Osisko Metals is 4.74 times more volatile than Brookfield Asset Management. It trades about 0.09 of its potential returns per unit of risk. Brookfield Asset Management is currently generating about 0.29 per unit of risk. If you would invest  38.00  in Osisko Metals on April 25, 2025 and sell it today you would earn a total of  7.00  from holding Osisko Metals or generate 18.42% return on investment over 90 days.

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

Osisko Metals  vs.  Brookfield Asset Management

Osisko Metals

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Osisko Metals are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Osisko Metals showed solid returns over the last few months and may actually be approaching a breakup point.

Brookfield Asset Man

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Asset Management are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Brookfield Asset unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Osisko Metals and Brookfield Asset

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

The idea behind Osisko Metals and Brookfield Asset Management 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.