Correlation Between ODYSSEY GOLD and AGRICULTBK HADR/25

Can any of the company-specific risk be diversified away by investing in both ODYSSEY GOLD and AGRICULTBK HADR/25 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 ODYSSEY GOLD and AGRICULTBK HADR/25 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ODYSSEY GOLD LTD and AGRICULTBK HADR25 YC, you can compare the effects of market volatilities on ODYSSEY GOLD and AGRICULTBK HADR/25 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 ODYSSEY GOLD with a short position of AGRICULTBK HADR/25. Check out your portfolio center. Please also check ongoing floating volatility patterns of ODYSSEY GOLD and AGRICULTBK HADR/25.

Diversification Opportunities for ODYSSEY GOLD and AGRICULTBK HADR/25

-0.4

Correlation Coefficient

ODYSSEY GOLD  AGRICULTBK HADR/25

Very good diversification

The 3 months correlation between ODYSSEY and AGRICULTBK is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ODYSSEY GOLD LTD and AGRICULTBK HADR25 YC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICULTBK HADR/25 and ODYSSEY GOLD 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 ODYSSEY GOLD LTD are associated (or correlated) with AGRICULTBK HADR/25. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRICULTBK HADR/25 has no effect on the direction of ODYSSEY GOLD i.e., ODYSSEY GOLD and AGRICULTBK HADR/25 go up and down completely randomly.

Pair Corralation between ODYSSEY GOLD and AGRICULTBK HADR/25

Assuming the 90 days horizon ODYSSEY GOLD LTD is expected to under-perform the AGRICULTBK HADR/25. In addition to that, ODYSSEY GOLD is 5.16 times more volatile than AGRICULTBK HADR25 YC. It trades about -0.06 of its total potential returns per unit of risk. AGRICULTBK HADR25 YC is currently generating about 0.21 per unit of volatility. If you would invest  1,094  in AGRICULTBK HADR25 YC on October 7, 2024 and sell it today you would earn a total of  176.00  from holding AGRICULTBK HADR25 YC or generate 16.09% return on investment over 90 days.

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

ODYSSEY GOLD LTD  vs.  AGRICULTBK HADR25 YC

ODYSSEY GOLD LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ODYSSEY GOLD LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

AGRICULTBK HADR/25

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AGRICULTBK HADR25 YC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AGRICULTBK HADR/25 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ODYSSEY GOLD and AGRICULTBK HADR/25

The main advantage of trading using opposite ODYSSEY GOLD and AGRICULTBK HADR/25 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ODYSSEY GOLD position performs unexpectedly, AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 will offset losses from the drop in AGRICULTBK HADR/25's long position.

The idea behind ODYSSEY GOLD LTD and AGRICULTBK HADR25 YC 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.