Correlation Between Odyssey Energy and Jade Gas
Can any of the company-specific risk be diversified away by investing in both Odyssey Energy and Jade Gas 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 Jade Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odyssey Energy and Jade Gas Holdings, you can compare the effects of market volatilities on Odyssey Energy and Jade Gas 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 Jade Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odyssey Energy and Jade Gas.
Diversification Opportunities for Odyssey Energy and Jade Gas
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Odyssey and Jade is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Odyssey Energy and Jade Gas Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jade Gas Holdings 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 Jade Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jade Gas Holdings has no effect on the direction of Odyssey Energy i.e., Odyssey Energy and Jade Gas go up and down completely randomly.
Pair Corralation between Odyssey Energy and Jade Gas
Assuming the 90 days trading horizon Odyssey Energy is expected to generate 1.49 times more return on investment than Jade Gas. However, Odyssey Energy is 1.49 times more volatile than Jade Gas Holdings. It trades about 0.03 of its potential returns per unit of risk. Jade Gas Holdings is currently generating about -0.02 per unit of risk. If you would invest 1.90 in Odyssey Energy on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Odyssey Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Odyssey Energy vs. Jade Gas Holdings
Performance |
| Timeline |
| Odyssey Energy |
| Jade Gas Holdings |
Odyssey Energy and Jade Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Odyssey Energy and Jade Gas
The main advantage of trading using opposite Odyssey Energy and Jade Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odyssey Energy position performs unexpectedly, Jade Gas 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 Jade Gas will offset losses from the drop in Jade Gas' long position.| Odyssey Energy vs. Diversified United Investment | Odyssey Energy vs. Hutchison Telecommunications | Odyssey Energy vs. Carlton Investments | Odyssey Energy vs. BKI Investment |
| Jade Gas vs. Argo Investments | Jade Gas vs. Dug Technology | Jade Gas vs. Ainsworth Game Technology | Jade Gas vs. REGAL ASIAN INVESTMENTS |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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