Correlation Between Super Retail and Odyssey Energy
Can any of the company-specific risk be diversified away by investing in both Super Retail 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 Super Retail and Odyssey Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Retail Group and Odyssey Energy, you can compare the effects of market volatilities on Super Retail 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 Super Retail with a short position of Odyssey Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and Odyssey Energy.
Diversification Opportunities for Super Retail and Odyssey Energy
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Super and Odyssey is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Odyssey Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Energy and Super Retail 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 Super Retail Group 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 Super Retail i.e., Super Retail and Odyssey Energy go up and down completely randomly.
Pair Corralation between Super Retail and Odyssey Energy
Assuming the 90 days trading horizon Super Retail Group is expected to under-perform the Odyssey Energy. But the stock apears to be less risky and, when comparing its historical volatility, Super Retail Group is 1.66 times less risky than Odyssey Energy. The stock trades about -0.11 of its potential returns per unit of risk. The Odyssey Energy is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.70 in Odyssey Energy on November 28, 2024 and sell it today you would earn a total of 0.40 from holding Odyssey Energy or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Retail Group vs. Odyssey Energy
Performance |
| Timeline |
| Super Retail Group |
| Odyssey Energy |
Super Retail and Odyssey Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Retail and Odyssey Energy
The main advantage of trading using opposite Super Retail and Odyssey Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Retail 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.| Super Retail vs. Qbe Insurance Group | Super Retail vs. Champion Iron | Super Retail vs. EROAD | Super Retail vs. Bisalloy Steel Group |
| Odyssey Energy vs. Infomedia | Odyssey Energy vs. Truscott Mining Corp | Odyssey Energy vs. Talisman Mining | Odyssey Energy vs. Charter Hall Education |
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 Stocks Directory module to find actively traded stocks across global markets.
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