Correlation Between Medtronic PLC and Odyssey Group
Can any of the company-specific risk be diversified away by investing in both Medtronic PLC 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 Medtronic PLC and Odyssey Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medtronic PLC and Odyssey Group International, you can compare the effects of market volatilities on Medtronic PLC 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 Medtronic PLC with a short position of Odyssey Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medtronic PLC and Odyssey Group.
Diversification Opportunities for Medtronic PLC and Odyssey Group
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Medtronic and Odyssey is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Medtronic PLC 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 Medtronic PLC 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 Medtronic PLC 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 Medtronic PLC i.e., Medtronic PLC and Odyssey Group go up and down completely randomly.
Pair Corralation between Medtronic PLC and Odyssey Group
Considering the 90-day investment horizon Medtronic PLC is expected to generate 14.49 times less return on investment than Odyssey Group. But when comparing it to its historical volatility, Medtronic PLC is 11.07 times less risky than Odyssey Group. It trades about 0.03 of its potential returns per unit of risk. Odyssey Group International is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Odyssey Group International on September 14, 2024 and sell it today you would lose (15.30) from holding Odyssey Group International or give up 85.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medtronic PLC vs. Odyssey Group International
Performance |
| Timeline |
| Medtronic PLC |
| Odyssey Group Intern |
Medtronic PLC and Odyssey Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medtronic PLC and Odyssey Group
The main advantage of trading using opposite Medtronic PLC and Odyssey Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medtronic PLC 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.| Medtronic PLC vs. Edwards Lifesciences Corp | Medtronic PLC vs. Abbott Laboratories | Medtronic PLC vs. Boston Scientific Corp | Medtronic PLC vs. Zimmer Biomet Holdings |
| Odyssey Group vs. Forza Innovations | Odyssey Group vs. Bioelectronics Corp | Odyssey Group vs. Myomo Inc | Odyssey Group vs. REMSleep Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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