Correlation Between Odyssey Energy and Imricor Medical
Can any of the company-specific risk be diversified away by investing in both Odyssey Energy and Imricor Medical 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 Odyssey Energy and Imricor Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odyssey Energy and Imricor Medical Systems, you can compare the effects of market volatilities on Odyssey Energy and Imricor Medical 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 Odyssey Energy with a short position of Imricor Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odyssey Energy and Imricor Medical.
Diversification Opportunities for Odyssey Energy and Imricor Medical
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Odyssey and Imricor is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Odyssey Energy and Imricor Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imricor Medical Systems and Odyssey Energy 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 Odyssey Energy are associated (or correlated) with Imricor Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imricor Medical Systems has no effect on the direction of Odyssey Energy i.e., Odyssey Energy and Imricor Medical go up and down completely randomly.
Pair Corralation between Odyssey Energy and Imricor Medical
Assuming the 90 days trading horizon Odyssey Energy is expected to under-perform the Imricor Medical. But the stock apears to be less risky and, when comparing its historical volatility, Odyssey Energy is 1.36 times less risky than Imricor Medical. The stock trades about -0.06 of its potential returns per unit of risk. The Imricor Medical Systems is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 63.00 in Imricor Medical Systems on September 1, 2024 and sell it today you would earn a total of 53.00 from holding Imricor Medical Systems or generate 84.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Odyssey Energy vs. Imricor Medical Systems
Performance |
| Timeline |
| Odyssey Energy |
| Imricor Medical Systems |
Odyssey Energy and Imricor Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Odyssey Energy and Imricor Medical
The main advantage of trading using opposite Odyssey Energy and Imricor Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odyssey Energy position performs unexpectedly, Imricor Medical 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 Imricor Medical will offset losses from the drop in Imricor Medical's long position.| Odyssey Energy vs. MFF Capital Investments | Odyssey Energy vs. Pinnacle Investment Management | Odyssey Energy vs. 29Metals | Odyssey Energy vs. BKI Investment |
| Imricor Medical vs. Jupiter Energy | Imricor Medical vs. WA1 Resources | Imricor Medical vs. Cooper Metals | Imricor Medical vs. OD6 Metals |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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