Correlation Between AMEX Advancing and Oatly Group
Can any of the company-specific risk be diversified away by investing in both AMEX Advancing and Oatly 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 AMEX Advancing and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMEX Advancing Stocks and Oatly Group AB, you can compare the effects of market volatilities on AMEX Advancing and Oatly 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 AMEX Advancing with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMEX Advancing and Oatly Group.
Diversification Opportunities for AMEX Advancing and Oatly Group
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AMEX and Oatly is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding AMEX Advancing Stocks and Oatly Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oatly Group AB and AMEX Advancing 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 AMEX Advancing Stocks are associated (or correlated) with Oatly Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oatly Group AB has no effect on the direction of AMEX Advancing i.e., AMEX Advancing and Oatly Group go up and down completely randomly.
Pair Corralation between AMEX Advancing and Oatly Group
Assuming the 90 days trading horizon AMEX Advancing Stocks is expected to generate 8.44 times more return on investment than Oatly Group. However, AMEX Advancing is 8.44 times more volatile than Oatly Group AB. It trades about 0.29 of its potential returns per unit of risk. Oatly Group AB is currently generating about -0.19 per unit of risk. If you would invest 112,900 in AMEX Advancing Stocks on November 27, 2024 and sell it today you would earn a total of 21,800 from holding AMEX Advancing Stocks or generate 19.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMEX Advancing Stocks vs. Oatly Group AB
Performance |
| Timeline |
AMEX Advancing and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
AMEX Advancing Stocks
Pair trading matchups for AMEX Advancing
Oatly Group AB
Pair trading matchups for Oatly Group
Pair Trading with AMEX Advancing and Oatly Group
The main advantage of trading using opposite AMEX Advancing and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMEX Advancing position performs unexpectedly, Oatly 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 Oatly Group will offset losses from the drop in Oatly Group's long position.| AMEX Advancing vs. Titan America SA | AMEX Advancing vs. Inter Parfums | AMEX Advancing vs. Catalyst Metals Limited | AMEX Advancing vs. Skechers USA |
| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |