Correlation Between ODYSSEY GOLD and CHINA PACINGRGDR5

Can any of the company-specific risk be diversified away by investing in both ODYSSEY GOLD and CHINA PACINGRGDR5 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 CHINA PACINGRGDR5 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 CHINA PACINGRGDR5 YC1, you can compare the effects of market volatilities on ODYSSEY GOLD and CHINA PACINGRGDR5 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 CHINA PACINGRGDR5. Check out your portfolio center. Please also check ongoing floating volatility patterns of ODYSSEY GOLD and CHINA PACINGRGDR5.

Diversification Opportunities for ODYSSEY GOLD and CHINA PACINGRGDR5

-0.46

Correlation Coefficient

ODYSSEY GOLD  CHINA PACINGRGDR5

Very good diversification

The 3 months correlation between ODYSSEY and CHINA is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding ODYSSEY GOLD LTD and CHINA PACINGRGDR5 YC1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA PACINGRGDR5 YC1 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 CHINA PACINGRGDR5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA PACINGRGDR5 YC1 has no effect on the direction of ODYSSEY GOLD i.e., ODYSSEY GOLD and CHINA PACINGRGDR5 go up and down completely randomly.

Pair Corralation between ODYSSEY GOLD and CHINA PACINGRGDR5

Assuming the 90 days horizon ODYSSEY GOLD LTD is expected to generate 9.85 times more return on investment than CHINA PACINGRGDR5. However, ODYSSEY GOLD is 9.85 times more volatile than CHINA PACINGRGDR5 YC1. It trades about 0.07 of its potential returns per unit of risk. CHINA PACINGRGDR5 YC1 is currently generating about 0.21 per unit of risk. If you would invest  0.95  in ODYSSEY GOLD LTD on April 22, 2025 and sell it today you would lose (0.05) from holding ODYSSEY GOLD LTD or give up 5.26% of portfolio value over 90 days.

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

ODYSSEY GOLD LTD  vs.  CHINA PACINGRGDR5 YC1

ODYSSEY GOLD LTD

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ODYSSEY GOLD LTD are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ODYSSEY GOLD reported solid returns over the last few months and may actually be approaching a breakup point.

CHINA PACINGRGDR5 YC1

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CHINA PACINGRGDR5 YC1 are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental indicators, CHINA PACINGRGDR5 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ODYSSEY GOLD and CHINA PACINGRGDR5

The main advantage of trading using opposite ODYSSEY GOLD and CHINA PACINGRGDR5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ODYSSEY GOLD position performs unexpectedly, CHINA PACINGRGDR5 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 CHINA PACINGRGDR5 will offset losses from the drop in CHINA PACINGRGDR5's long position.

The idea behind ODYSSEY GOLD LTD and CHINA PACINGRGDR5 YC1 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.