Correlation Between Stryker and Odyssey Group

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

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

Diversification Opportunities for Stryker and Odyssey Group

-0.35

Correlation Coefficient

Stryker  Odyssey Group

Very good diversification

The 3 months correlation between Stryker and Odyssey is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Stryker and Odyssey Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Group Intern and Stryker 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 Stryker are associated (or correlated) with Odyssey Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssey Group Intern has no effect on the direction of Stryker i.e., Stryker and Odyssey Group go up and down completely randomly.

Pair Corralation between Stryker and Odyssey Group

Considering the 90-day investment horizon Stryker is expected to generate 0.17 times more return on investment than Odyssey Group. However, Stryker is 5.93 times less risky than Odyssey Group. It trades about 0.06 of its potential returns per unit of risk. Odyssey Group International is currently generating about -0.19 per unit of risk. If you would invest  36,375  in Stryker on December 20, 2024 and sell it today you would earn a total of  1,430  from holding Stryker or generate 3.93% return on investment over 90 days.

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

Stryker  vs.  Odyssey Group International

Stryker

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Stryker are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Stryker is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Odyssey Group Intern

Risk-Adjusted Performance

Very Weak

Over the last 90 days Odyssey Group International 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 basic 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 Stryker and Odyssey Group

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

The idea behind Stryker and Odyssey Group International 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.