Correlation Between Aeluma and Odyssey Semiconductor
Can any of the company-specific risk be diversified away by investing in both Aeluma and Odyssey Semiconductor 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 Aeluma and Odyssey Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeluma Inc and Odyssey Semiconductor Technologies, you can compare the effects of market volatilities on Aeluma and Odyssey Semiconductor 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 Aeluma with a short position of Odyssey Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeluma and Odyssey Semiconductor.
Diversification Opportunities for Aeluma and Odyssey Semiconductor
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aeluma and Odyssey is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aeluma Inc and Odyssey Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Semiconductor and Aeluma 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 Aeluma Inc are associated (or correlated) with Odyssey Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssey Semiconductor has no effect on the direction of Aeluma i.e., Aeluma and Odyssey Semiconductor go up and down completely randomly.
Pair Corralation between Aeluma and Odyssey Semiconductor
Given the investment horizon of 90 days Aeluma Inc is expected to generate 0.56 times more return on investment than Odyssey Semiconductor. However, Aeluma Inc is 1.78 times less risky than Odyssey Semiconductor. It trades about 0.05 of its potential returns per unit of risk. Odyssey Semiconductor Technologies is currently generating about 0.01 per unit of risk. If you would invest 210.00 in Aeluma Inc on August 25, 2024 and sell it today you would earn a total of 149.00 from holding Aeluma Inc or generate 70.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeluma Inc vs. Odyssey Semiconductor Technolo
Performance |
| Timeline |
| Aeluma Inc |
| Odyssey Semiconductor |
Aeluma and Odyssey Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeluma and Odyssey Semiconductor
The main advantage of trading using opposite Aeluma and Odyssey Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeluma position performs unexpectedly, Odyssey Semiconductor 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 Odyssey Semiconductor will offset losses from the drop in Odyssey Semiconductor's long position.| Aeluma vs. Archer Materials Limited | Aeluma vs. Alphawave IP Group | Aeluma vs. BrainChip Holdings | Aeluma vs. Arteris |
| Odyssey Semiconductor vs. ams AG | Odyssey Semiconductor vs. Guerrilla RF | Odyssey Semiconductor vs. Archer Materials Limited | Odyssey Semiconductor vs. Alphawave IP Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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