Correlation Between Odyssey Group and Medtronic PLC
Can any of the company-specific risk be diversified away by investing in both Odyssey Group and Medtronic PLC 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 Group and Medtronic PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odyssey Group International and Medtronic PLC, you can compare the effects of market volatilities on Odyssey Group and Medtronic PLC 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 Group with a short position of Medtronic PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odyssey Group and Medtronic PLC.
Diversification Opportunities for Odyssey Group and Medtronic PLC
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Odyssey and Medtronic is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Odyssey Group International and Medtronic PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medtronic PLC and Odyssey Group 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 Group International are associated (or correlated) with Medtronic PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medtronic PLC has no effect on the direction of Odyssey Group i.e., Odyssey Group and Medtronic PLC go up and down completely randomly.
Pair Corralation between Odyssey Group and Medtronic PLC
Given the investment horizon of 90 days Odyssey Group International is expected to generate 13.21 times more return on investment than Medtronic PLC. However, Odyssey Group is 13.21 times more volatile than Medtronic PLC. It trades about 0.03 of its potential returns per unit of risk. Medtronic PLC is currently generating about 0.02 per unit of risk. If you would invest 9.50 in Odyssey Group International on September 14, 2024 and sell it today you would lose (6.80) from holding Odyssey Group International or give up 71.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Odyssey Group International vs. Medtronic PLC
Performance |
| Timeline |
| Odyssey Group Intern |
| Medtronic PLC |
Odyssey Group and Medtronic PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Odyssey Group and Medtronic PLC
The main advantage of trading using opposite Odyssey Group and Medtronic PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odyssey Group position performs unexpectedly, Medtronic PLC 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 Medtronic PLC will offset losses from the drop in Medtronic PLC's long position.| Odyssey Group vs. Forza Innovations | Odyssey Group vs. Bioelectronics Corp | Odyssey Group vs. Myomo Inc | Odyssey Group vs. REMSleep Holdings |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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