Correlation Between China Clean and Oatly Group
Can any of the company-specific risk be diversified away by investing in both China Clean 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 China Clean and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Clean Energy and Oatly Group AB, you can compare the effects of market volatilities on China Clean 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 China Clean with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and Oatly Group.
Diversification Opportunities for China Clean and Oatly Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Oatly is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy 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 China Clean 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 China Clean Energy 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 China Clean i.e., China Clean and Oatly Group go up and down completely randomly.
Pair Corralation between China Clean and Oatly Group
If you would invest 69.00 in Oatly Group AB on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Oatly Group AB or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
China Clean Energy vs. Oatly Group AB
Performance |
| Timeline |
| China Clean Energy |
| Oatly Group AB |
China Clean and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Clean and Oatly Group
The main advantage of trading using opposite China Clean and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean 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.| China Clean vs. Chemours Co | China Clean vs. International Flavors Fragrances | China Clean vs. Air Products and | China Clean vs. PPG Industries |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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