Correlation Between Odyssey Energy and Pengana Private

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

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

Diversification Opportunities for Odyssey Energy and Pengana Private

-0.47

Correlation Coefficient

Odyssey Energy  Pengana Private

Very good diversification

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

Pair Corralation between Odyssey Energy and Pengana Private

Assuming the 90 days trading horizon Odyssey Energy is expected to generate 1.74 times more return on investment than Pengana Private. However, Odyssey Energy is 1.74 times more volatile than Pengana Private Equity. It trades about 0.1 of its potential returns per unit of risk. Pengana Private Equity is currently generating about -0.02 per unit of risk. If you would invest  1.80  in Odyssey Energy on December 30, 2024 and sell it today you would earn a total of  0.50  from holding Odyssey Energy or generate 27.78% return on investment over 90 days.

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

Odyssey Energy  vs.  Pengana Private Equity

Odyssey Energy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Odyssey Energy are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Odyssey Energy unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pengana Private Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pengana Private Equity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Pengana Private is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Odyssey Energy and Pengana Private

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

The idea behind Odyssey Energy and Pengana Private Equity 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.

Check out your portfolio center.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.