Correlation Between Civeo Corp and Odyssey Marine

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

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

Diversification Opportunities for Civeo Corp and Odyssey Marine

0.25

Correlation Coefficient

Civeo Corp  Odyssey Marine

Modest diversification

The 3 months correlation between Civeo and Odyssey is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Civeo Corp and Odyssey Marine Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Marine Explo and Civeo Corp 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 Civeo Corp are associated (or correlated) with Odyssey Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssey Marine Explo has no effect on the direction of Civeo Corp i.e., Civeo Corp and Odyssey Marine go up and down completely randomly.

Pair Corralation between Civeo Corp and Odyssey Marine

Given the investment horizon of 90 days Civeo Corp is expected to generate 0.65 times more return on investment than Odyssey Marine. However, Civeo Corp is 1.54 times less risky than Odyssey Marine. It trades about 0.03 of its potential returns per unit of risk. Odyssey Marine Exploration is currently generating about -0.11 per unit of risk. If you would invest  2,231  in Civeo Corp on December 28, 2024 and sell it today you would earn a total of  54.00  from holding Civeo Corp or generate 2.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Civeo Corp  vs.  Odyssey Marine Exploration

Civeo Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Civeo Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Civeo Corp is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Odyssey Marine Explo

Risk-Adjusted Performance

Very Weak

Over the last 90 days Odyssey Marine Exploration has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Civeo Corp and Odyssey Marine

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

The idea behind Civeo Corp and Odyssey Marine Exploration 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.