Correlation Between Bank of America and Odyssey Group
Can any of the company-specific risk be diversified away by investing in both Bank of America and Odyssey Group 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 Bank of America and Odyssey Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Odyssey Group International, you can compare the effects of market volatilities on Bank of America and Odyssey Group 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 Bank of America with a short position of Odyssey Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Odyssey Group.
Diversification Opportunities for Bank of America and Odyssey Group
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Odyssey is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Odyssey Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Group Intern and Bank of America 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 Bank of America are associated (or correlated) with Odyssey Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssey Group Intern has no effect on the direction of Bank of America i.e., Bank of America and Odyssey Group go up and down completely randomly.
Pair Corralation between Bank of America and Odyssey Group
Considering the 90-day investment horizon Bank of America is expected to generate 0.23 times more return on investment than Odyssey Group. However, Bank of America is 4.33 times less risky than Odyssey Group. It trades about 0.3 of its potential returns per unit of risk. Odyssey Group International is currently generating about -0.31 per unit of risk. If you would invest 4,338 in Bank of America on October 20, 2024 and sell it today you would earn a total of 315.00 from holding Bank of America or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Odyssey Group International
Performance |
| Timeline |
| Bank of America |
| Odyssey Group Intern |
Bank of America and Odyssey Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Odyssey Group
The main advantage of trading using opposite Bank of America and Odyssey Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Odyssey Group 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 Group will offset losses from the drop in Odyssey Group's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of |
| Odyssey Group vs. Artivion | Odyssey Group vs. Anika Therapeutics | Odyssey Group vs. Sight Sciences | Odyssey Group vs. Orthofix Medical |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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