Correlation Between Odyssean Investment and Oxford Technology

Can any of the company-specific risk be diversified away by investing in both Odyssean Investment and Oxford 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 Oxford 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 Oxford Technology 2, you can compare the effects of market volatilities on Odyssean Investment and Oxford 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 Oxford Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odyssean Investment and Oxford Technology.

Diversification Opportunities for Odyssean Investment and Oxford Technology

0.68

Correlation Coefficient

Odyssean Investment  Oxford Technology

Poor diversification

The 3 months correlation between Odyssean and Oxford is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Odyssean Investment Trust and Oxford Technology 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford 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 Oxford Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Technology has no effect on the direction of Odyssean Investment i.e., Odyssean Investment and Oxford Technology go up and down completely randomly.

Pair Corralation between Odyssean Investment and Oxford Technology

Assuming the 90 days trading horizon Odyssean Investment Trust is expected to generate 0.77 times more return on investment than Oxford Technology. However, Odyssean Investment Trust is 1.3 times less risky than Oxford Technology. It trades about -0.09 of its potential returns per unit of risk. Oxford Technology 2 is currently generating about -0.2 per unit of risk. If you would invest  16,850  in Odyssean Investment Trust on September 26, 2024 and sell it today you would lose (1,450) from holding Odyssean Investment Trust or give up 8.61% of portfolio value over 90 days.

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

Odyssean Investment Trust  vs.  Oxford Technology 2

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.

Oxford Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oxford Technology 2 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Odyssean Investment and Oxford Technology

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

The idea behind Odyssean Investment Trust and Oxford Technology 2 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.