Correlation Between ConforMIS and Odyssey Group

Can any of the company-specific risk be diversified away by investing in both ConforMIS and Odyssey Group 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 ConforMIS and Odyssey Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ConforMIS and Odyssey Group International, you can compare the effects of market volatilities on ConforMIS and Odyssey Group 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 ConforMIS with a short position of Odyssey Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConforMIS and Odyssey Group.

Diversification Opportunities for ConforMIS and Odyssey Group

-0.24

Correlation Coefficient

ConforMIS  Odyssey Group

Very good diversification

The 3 months correlation between ConforMIS and Odyssey is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ConforMIS and Odyssey Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Group Intern and ConforMIS 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 ConforMIS are associated (or correlated) with Odyssey Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssey Group Intern has no effect on the direction of ConforMIS i.e., ConforMIS and Odyssey Group go up and down completely randomly.

Pair Corralation between ConforMIS and Odyssey Group

If you would invest  3.20  in Odyssey Group International on September 15, 2024 and sell it today you would lose (0.80) from holding Odyssey Group International or give up 25.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

ConforMIS  vs.  Odyssey Group International

ConforMIS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ConforMIS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, ConforMIS is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Odyssey Group Intern

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Odyssey Group International are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Odyssey Group showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ConforMIS and Odyssey Group

The main advantage of trading using opposite ConforMIS and Odyssey Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConforMIS position performs unexpectedly, Odyssey Group 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 Group will offset losses from the drop in Odyssey Group's long position.

The idea behind ConforMIS and Odyssey Group International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.