Correlation Between ODDITY Tech and Amdocs

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

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

Diversification Opportunities for ODDITY Tech and Amdocs

0.66

Correlation Coefficient

ODDITY Tech  Amdocs

Poor diversification

The 3 months correlation between ODDITY and Amdocs is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding ODDITY Tech Ltd and Amdocs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amdocs and ODDITY Tech 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 ODDITY Tech Ltd are associated (or correlated) with Amdocs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amdocs has no effect on the direction of ODDITY Tech i.e., ODDITY Tech and Amdocs go up and down completely randomly.

Pair Corralation between ODDITY Tech and Amdocs

Considering the 90-day investment horizon ODDITY Tech Ltd is expected to generate 2.84 times more return on investment than Amdocs. However, ODDITY Tech is 2.84 times more volatile than Amdocs. It trades about 0.07 of its potential returns per unit of risk. Amdocs is currently generating about -0.04 per unit of risk. If you would invest  6,326  in ODDITY Tech Ltd on May 2, 2025 and sell it today you would earn a total of  623.00  from holding ODDITY Tech Ltd or generate 9.85% return on investment over 90 days.

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

ODDITY Tech Ltd  vs.  Amdocs

ODDITY Tech

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ODDITY Tech Ltd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, ODDITY Tech exhibited solid returns over the last few months and may actually be approaching a breakup point.

Amdocs

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amdocs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Amdocs is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ODDITY Tech and Amdocs

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

The idea behind ODDITY Tech Ltd and Amdocs 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.