Correlation Between Odyssee Technologies and X Fab

Can any of the company-specific risk be diversified away by investing in both Odyssee Technologies and X Fab 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 X Fab 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 X Fab Silicon, you can compare the effects of market volatilities on Odyssee Technologies and X Fab 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 X Fab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odyssee Technologies and X Fab.

Diversification Opportunities for Odyssee Technologies and X Fab

-0.47

Correlation Coefficient

Odyssee Technologies  X Fab

Very good diversification

The 3 months correlation between Odyssee and XFAB is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Odyssee Technologies SA and X Fab Silicon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Fab Silicon 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 X Fab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Fab Silicon has no effect on the direction of Odyssee Technologies i.e., Odyssee Technologies and X Fab go up and down completely randomly.

Pair Corralation between Odyssee Technologies and X Fab

Assuming the 90 days trading horizon Odyssee Technologies SA is expected to generate 0.58 times more return on investment than X Fab. However, Odyssee Technologies SA is 1.73 times less risky than X Fab. It trades about 0.36 of its potential returns per unit of risk. X Fab Silicon is currently generating about 0.11 per unit of risk. If you would invest  1,450  in Odyssee Technologies SA on October 25, 2024 and sell it today you would earn a total of  160.00  from holding Odyssee Technologies SA or generate 11.03% return on investment over 90 days.

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

Odyssee Technologies SA  vs.  X Fab Silicon

Odyssee Technologies

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Odyssee Technologies SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Odyssee Technologies may actually be approaching a critical reversion point that can send shares even higher in February 2025.

X Fab Silicon

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in X Fab Silicon are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, X Fab sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Odyssee Technologies and X Fab

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

The idea behind Odyssee Technologies SA and X Fab Silicon 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..