Correlation Between Odyssean Investment and DXC Technology

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

By analyzing existing cross correlation between Odyssean Investment Trust and DXC Technology Co, you can compare the effects of market volatilities on Odyssean Investment and DXC Technology 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 Odyssean Investment with a short position of DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odyssean Investment and DXC Technology.

Diversification Opportunities for Odyssean Investment and DXC Technology

-0.58

Correlation Coefficient

Odyssean Investment  DXC Technology

Excellent diversification

The 3 months correlation between Odyssean and DXC is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Odyssean Investment Trust and DXC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology and Odyssean Investment 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 Odyssean Investment Trust are associated (or correlated) with DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of Odyssean Investment i.e., Odyssean Investment and DXC Technology go up and down completely randomly.

Pair Corralation between Odyssean Investment and DXC Technology

Assuming the 90 days trading horizon Odyssean Investment Trust is expected to generate 0.91 times more return on investment than DXC Technology. However, Odyssean Investment Trust is 1.1 times less risky than DXC Technology. It trades about -0.11 of its potential returns per unit of risk. DXC Technology Co is currently generating about -0.28 per unit of risk. If you would invest  15,650  in Odyssean Investment Trust on September 25, 2024 and sell it today you would lose (450.00) from holding Odyssean Investment Trust or give up 2.88% of portfolio value over 90 days.

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

Odyssean Investment Trust  vs.  DXC Technology Co

Odyssean Investment Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Odyssean Investment Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

DXC Technology

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in DXC Technology Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, DXC Technology may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Odyssean Investment and DXC Technology

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

The idea behind Odyssean Investment Trust and DXC Technology Co 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.