Correlation Between Odyssee Technologies and Seche Environnem

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

By analyzing existing cross correlation between Odyssee Technologies SA and Seche Environnem, you can compare the effects of market volatilities on Odyssee Technologies and Seche Environnem 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 Odyssee Technologies with a short position of Seche Environnem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odyssee Technologies and Seche Environnem.

Diversification Opportunities for Odyssee Technologies and Seche Environnem

0.23

Correlation Coefficient

Odyssee Technologies  Seche Environnem

Modest diversification

The 3 months correlation between Odyssee and Seche is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Odyssee Technologies SA and Seche Environnem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seche Environnem and Odyssee Technologies 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 Odyssee Technologies SA are associated (or correlated) with Seche Environnem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seche Environnem has no effect on the direction of Odyssee Technologies i.e., Odyssee Technologies and Seche Environnem go up and down completely randomly.

Pair Corralation between Odyssee Technologies and Seche Environnem

Assuming the 90 days trading horizon Odyssee Technologies SA is expected to generate 0.92 times more return on investment than Seche Environnem. However, Odyssee Technologies SA is 1.09 times less risky than Seche Environnem. It trades about 0.15 of its potential returns per unit of risk. Seche Environnem is currently generating about 0.03 per unit of risk. If you would invest  1,436  in Odyssee Technologies SA on December 23, 2024 and sell it today you would earn a total of  354.00  from holding Odyssee Technologies SA or generate 24.65% return on investment over 90 days.

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

Odyssee Technologies SA  vs.  Seche Environnem

Odyssee Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Odyssee Technologies SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Odyssee Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Seche Environnem

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Seche Environnem are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Seche Environnem is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Odyssee Technologies and Seche Environnem

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

The idea behind Odyssee Technologies SA and Seche Environnem 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.