Correlation Between ODDITY Tech and Extreme Networks
Can any of the company-specific risk be diversified away by investing in both ODDITY Tech and Extreme Networks 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 Extreme Networks 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 Extreme Networks, you can compare the effects of market volatilities on ODDITY Tech and Extreme Networks 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 Extreme Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of ODDITY Tech and Extreme Networks.
Diversification Opportunities for ODDITY Tech and Extreme Networks
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ODDITY and Extreme is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ODDITY Tech Ltd and Extreme Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extreme Networks 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 Extreme Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extreme Networks has no effect on the direction of ODDITY Tech i.e., ODDITY Tech and Extreme Networks go up and down completely randomly.
Pair Corralation between ODDITY Tech and Extreme Networks
Considering the 90-day investment horizon ODDITY Tech Ltd is expected to under-perform the Extreme Networks. In addition to that, ODDITY Tech is 1.14 times more volatile than Extreme Networks. It trades about -0.15 of its total potential returns per unit of risk. Extreme Networks is currently generating about -0.1 per unit of volatility. If you would invest 2,232 in Extreme Networks on September 12, 2025 and sell it today you would lose (426.00) from holding Extreme Networks or give up 19.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ODDITY Tech Ltd vs. Extreme Networks
Performance |
| Timeline |
| ODDITY Tech |
| Extreme Networks |
ODDITY Tech and Extreme Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ODDITY Tech and Extreme Networks
The main advantage of trading using opposite ODDITY Tech and Extreme Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ODDITY Tech position performs unexpectedly, Extreme Networks 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 Extreme Networks will offset losses from the drop in Extreme Networks' long position.| ODDITY Tech vs. CSG Systems International | ODDITY Tech vs. Alarm Holdings | ODDITY Tech vs. Payoneer Global | ODDITY Tech vs. Gen Digital |
| Extreme Networks vs. Ondas Holdings | Extreme Networks vs. Knowles Cor | Extreme Networks vs. Diodes Incorporated | Extreme Networks vs. ODDITY Tech Ltd |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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