Correlation Between Odyssean Investment and Centrica PLC
Can any of the company-specific risk be diversified away by investing in both Odyssean Investment and Centrica 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 Odyssean Investment and Centrica PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odyssean Investment Trust and Centrica PLC, you can compare the effects of market volatilities on Odyssean Investment and Centrica 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 Odyssean Investment with a short position of Centrica PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odyssean Investment and Centrica PLC.
Diversification Opportunities for Odyssean Investment and Centrica PLC
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Odyssean and Centrica is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Odyssean Investment Trust and Centrica PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centrica PLC and Odyssean Investment 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 Odyssean Investment Trust are associated (or correlated) with Centrica PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centrica PLC has no effect on the direction of Odyssean Investment i.e., Odyssean Investment and Centrica PLC go up and down completely randomly.
Pair Corralation between Odyssean Investment and Centrica PLC
Assuming the 90 days trading horizon Odyssean Investment Trust is expected to under-perform the Centrica PLC. In addition to that, Odyssean Investment is 1.25 times more volatile than Centrica PLC. It trades about -0.11 of its total potential returns per unit of risk. Centrica PLC is currently generating about 0.11 per unit of volatility. If you would invest 12,440 in Centrica PLC on September 13, 2024 and sell it today you would earn a total of 720.00 from holding Centrica PLC or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Odyssean Investment Trust vs. Centrica PLC
Performance |
| Timeline |
| Odyssean Investment Trust |
| Centrica PLC |
Odyssean Investment and Centrica PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Odyssean Investment and Centrica PLC
The main advantage of trading using opposite Odyssean Investment and Centrica PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odyssean Investment position performs unexpectedly, Centrica 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 Centrica PLC will offset losses from the drop in Centrica PLC's long position.| Odyssean Investment vs. Catalyst Media Group | Odyssean Investment vs. CATLIN GROUP | Odyssean Investment vs. Tamburi Investment Partners | Odyssean Investment vs. Magnora ASA |
| Centrica PLC vs. Indutrade AB | Centrica PLC vs. Various Eateries PLC | Centrica PLC vs. Supermarket Income REIT | Centrica PLC vs. Ecclesiastical Insurance Office |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |