Correlation Between Odyssey Group and Myomo

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

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

Diversification Opportunities for Odyssey Group and Myomo

-0.38

Correlation Coefficient

Odyssey Group  Myomo

Very good diversification

The 3 months correlation between Odyssey and Myomo is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Odyssey Group International and Myomo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myomo Inc and Odyssey Group 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 Group International are associated (or correlated) with Myomo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myomo Inc has no effect on the direction of Odyssey Group i.e., Odyssey Group and Myomo go up and down completely randomly.

Pair Corralation between Odyssey Group and Myomo

Given the investment horizon of 90 days Odyssey Group is expected to generate 2.3 times less return on investment than Myomo. In addition to that, Odyssey Group is 3.13 times more volatile than Myomo Inc. It trades about 0.03 of its total potential returns per unit of risk. Myomo Inc is currently generating about 0.19 per unit of volatility. If you would invest  401.00  in Myomo Inc on September 15, 2024 and sell it today you would earn a total of  225.00  from holding Myomo Inc or generate 56.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Odyssey Group International  vs.  Myomo Inc

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.

Myomo Inc

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Myomo Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Myomo displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Odyssey Group and Myomo

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

The idea behind Odyssey Group International and Myomo Inc 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.