Correlation Between Odyssey Marine and New Residential
Can any of the company-specific risk be diversified away by investing in both Odyssey Marine and New Residential 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 Marine and New Residential into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odyssey Marine Exploration and New Residential Investment, you can compare the effects of market volatilities on Odyssey Marine and New Residential 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 Marine with a short position of New Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odyssey Marine and New Residential.
Diversification Opportunities for Odyssey Marine and New Residential
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Odyssey and New is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Odyssey Marine Exploration and New Residential Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Residential Inve and Odyssey Marine 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 Marine Exploration are associated (or correlated) with New Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Residential Inve has no effect on the direction of Odyssey Marine i.e., Odyssey Marine and New Residential go up and down completely randomly.
Pair Corralation between Odyssey Marine and New Residential
Assuming the 90 days trading horizon Odyssey Marine Exploration is expected to under-perform the New Residential. In addition to that, Odyssey Marine is 6.18 times more volatile than New Residential Investment. It trades about -0.24 of its total potential returns per unit of risk. New Residential Investment is currently generating about 0.24 per unit of volatility. If you would invest 1,083 in New Residential Investment on November 28, 2024 and sell it today you would earn a total of 61.00 from holding New Residential Investment or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Odyssey Marine Exploration vs. New Residential Investment
Performance |
| Timeline |
| Odyssey Marine Explo |
| New Residential Inve |
Odyssey Marine and New Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Odyssey Marine and New Residential
The main advantage of trading using opposite Odyssey Marine and New Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odyssey Marine position performs unexpectedly, New Residential 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 New Residential will offset losses from the drop in New Residential's long position.| Odyssey Marine vs. H2O Retailing | Odyssey Marine vs. Retail Estates NV | Odyssey Marine vs. Japan Medical Dynamic | Odyssey Marine vs. SPARTAN STORES |
| New Residential vs. Yuexiu Transport Infrastructure | New Residential vs. EVS Broadcast Equipment | New Residential vs. China Resources Beer | New Residential vs. Thai Beverage Public |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |