Correlation Between Osisko Metals and Richelieu Hardware

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

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

Diversification Opportunities for Osisko Metals and Richelieu Hardware

0.47

Correlation Coefficient

Osisko Metals  Richelieu Hardware

Very weak diversification

The 3 months correlation between Osisko and Richelieu is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Osisko Metals and Richelieu Hardware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Richelieu Hardware 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 Richelieu Hardware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Richelieu Hardware has no effect on the direction of Osisko Metals i.e., Osisko Metals and Richelieu Hardware go up and down completely randomly.

Pair Corralation between Osisko Metals and Richelieu Hardware

Given the investment horizon of 90 days Osisko Metals is expected to generate 2.67 times more return on investment than Richelieu Hardware. However, Osisko Metals is 2.67 times more volatile than Richelieu Hardware. It trades about 0.09 of its potential returns per unit of risk. Richelieu Hardware is currently generating about 0.12 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.  Richelieu Hardware

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.

Richelieu Hardware

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Richelieu Hardware are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical indicators, Richelieu Hardware may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Osisko Metals and Richelieu Hardware

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

The idea behind Osisko Metals and Richelieu Hardware 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.