Correlation Between Odyssean Investment and ACCSYS TECHPLC

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Can any of the company-specific risk be diversified away by investing in both Odyssean Investment and ACCSYS TECHPLC 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 Odyssean Investment and ACCSYS TECHPLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odyssean Investment Trust and ACCSYS TECHPLC EO, you can compare the effects of market volatilities on Odyssean Investment and ACCSYS TECHPLC 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 Odyssean Investment with a short position of ACCSYS TECHPLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odyssean Investment and ACCSYS TECHPLC.

Diversification Opportunities for Odyssean Investment and ACCSYS TECHPLC

0.75
  Correlation Coefficient

Poor diversification

The 3 months correlation between Odyssean and ACCSYS is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Odyssean Investment Trust and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO and Odyssean Investment 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 Odyssean Investment Trust are associated (or correlated) with ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of Odyssean Investment i.e., Odyssean Investment and ACCSYS TECHPLC go up and down completely randomly.

Pair Corralation between Odyssean Investment and ACCSYS TECHPLC

Assuming the 90 days horizon Odyssean Investment is expected to generate 1.24 times less return on investment than ACCSYS TECHPLC. But when comparing it to its historical volatility, Odyssean Investment Trust is 2.04 times less risky than ACCSYS TECHPLC. It trades about 0.22 of its potential returns per unit of risk. ACCSYS TECHPLC EO is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  51.00  in ACCSYS TECHPLC EO on April 17, 2025 and sell it today you would earn a total of  14.00  from holding ACCSYS TECHPLC EO or generate 27.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Odyssean Investment Trust  vs.  ACCSYS TECHPLC EO

 Performance 
       Timeline  
Odyssean Investment Trust 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Odyssean Investment Trust are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Odyssean Investment reported solid returns over the last few months and may actually be approaching a breakup point.
ACCSYS TECHPLC EO 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ACCSYS TECHPLC EO are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ACCSYS TECHPLC reported solid returns over the last few months and may actually be approaching a breakup point.

Odyssean Investment and ACCSYS TECHPLC Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Odyssean Investment and ACCSYS TECHPLC

The main advantage of trading using opposite Odyssean Investment and ACCSYS TECHPLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odyssean Investment position performs unexpectedly, ACCSYS TECHPLC 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 ACCSYS TECHPLC will offset losses from the drop in ACCSYS TECHPLC's long position.
The idea behind Odyssean Investment Trust and ACCSYS TECHPLC EO 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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