Correlation Between Odyssean Investment and Gaming

Can any of the company-specific risk be diversified away by investing in both Odyssean Investment and Gaming 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 Gaming 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 Gaming and Leisure, you can compare the effects of market volatilities on Odyssean Investment and Gaming 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 Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odyssean Investment and Gaming.

Diversification Opportunities for Odyssean Investment and Gaming

-0.59

Correlation Coefficient

Odyssean Investment  Gaming

Excellent diversification

The 3 months correlation between Odyssean and Gaming is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Odyssean Investment Trust and Gaming and Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming and Leisure 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 Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming and Leisure has no effect on the direction of Odyssean Investment i.e., Odyssean Investment and Gaming go up and down completely randomly.

Pair Corralation between Odyssean Investment and Gaming

Assuming the 90 days horizon Odyssean Investment Trust is expected to generate 1.47 times more return on investment than Gaming. However, Odyssean Investment is 1.47 times more volatile than Gaming and Leisure. It trades about 0.24 of its potential returns per unit of risk. Gaming and Leisure is currently generating about -0.05 per unit of risk. If you would invest  144.00  in Odyssean Investment Trust on April 24, 2025 and sell it today you would earn a total of  39.00  from holding Odyssean Investment Trust or generate 27.08% return on investment over 90 days.

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

Odyssean Investment Trust  vs.  Gaming and Leisure

Odyssean Investment Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Odyssean Investment Trust are ranked lower than 18 (%) 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.

Gaming and Leisure

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gaming and Leisure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Gaming is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Odyssean Investment and Gaming

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

The idea behind Odyssean Investment Trust and Gaming and Leisure 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.