Correlation Between Origin Energy and Odyssey Energy
Can any of the company-specific risk be diversified away by investing in both Origin Energy and Odyssey Energy 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 Origin Energy and Odyssey Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Energy and Odyssey Energy, you can compare the effects of market volatilities on Origin Energy and Odyssey Energy 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 Origin Energy with a short position of Odyssey Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Energy and Odyssey Energy.
Diversification Opportunities for Origin Energy and Odyssey Energy
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and Odyssey is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Origin Energy and Odyssey Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Energy and Origin 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 Origin Energy are associated (or correlated) with Odyssey Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssey Energy has no effect on the direction of Origin Energy i.e., Origin Energy and Odyssey Energy go up and down completely randomly.
Pair Corralation between Origin Energy and Odyssey Energy
Assuming the 90 days trading horizon Origin Energy is expected to generate 0.23 times more return on investment than Odyssey Energy. However, Origin Energy is 4.39 times less risky than Odyssey Energy. It trades about 0.07 of its potential returns per unit of risk. Odyssey Energy is currently generating about 0.0 per unit of risk. If you would invest 709.00 in Origin Energy on August 29, 2024 and sell it today you would earn a total of 360.00 from holding Origin Energy or generate 50.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Origin Energy vs. Odyssey Energy
Performance |
Timeline |
Origin Energy |
Odyssey Energy |
Origin Energy and Odyssey Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Origin Energy and Odyssey Energy
The main advantage of trading using opposite Origin Energy and Odyssey Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Energy position performs unexpectedly, Odyssey Energy 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 Energy will offset losses from the drop in Odyssey Energy's long position.Origin Energy vs. Westpac Banking | Origin Energy vs. ABACUS STORAGE KING | Origin Energy vs. Odyssey Energy | Origin Energy vs. Objective Corp |
Odyssey Energy vs. Westpac Banking | Odyssey Energy vs. ABACUS STORAGE KING | Odyssey Energy vs. People Infrastructure | Odyssey Energy vs. Insurance Australia Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |