Correlation Between Seafarer Exploration and Odyssey Group

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

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

Diversification Opportunities for Seafarer Exploration and Odyssey Group

-0.48

Correlation Coefficient

Seafarer Exploration  Odyssey Group

Very good diversification

The 3 months correlation between Seafarer and Odyssey is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Seafarer Exploration 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 Seafarer Exploration 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 Seafarer Exploration 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 Seafarer Exploration i.e., Seafarer Exploration and Odyssey Group go up and down completely randomly.

Pair Corralation between Seafarer Exploration and Odyssey Group

Given the investment horizon of 90 days Seafarer Exploration is expected to under-perform the Odyssey Group. But the pink sheet apears to be less risky and, when comparing its historical volatility, Seafarer Exploration is 3.9 times less risky than Odyssey Group. The pink sheet trades about -0.1 of its potential returns per unit of risk. The Odyssey Group International is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  0.60  in Odyssey Group International on May 5, 2025 and sell it today you would earn a total of  1.60  from holding Odyssey Group International or generate 266.67% return on investment over 90 days.

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

Seafarer Exploration  vs.  Odyssey Group International

Seafarer Exploration

Risk-Adjusted Performance

Very Weak

Over the last 90 days Seafarer Exploration has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Odyssey Group Intern

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Odyssey Group International are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Odyssey Group showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Seafarer Exploration and Odyssey Group

The main advantage of trading using opposite Seafarer Exploration and Odyssey Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seafarer Exploration 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 Seafarer Exploration 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.

Check out your portfolio center.

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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.