Correlation Between Celsius Holdings and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings 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 Celsius Holdings and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Oatly Group AB, you can compare the effects of market volatilities on Celsius Holdings 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 Celsius Holdings with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Oatly Group.
Diversification Opportunities for Celsius Holdings and Oatly Group
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Celsius and Oatly is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings 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 Celsius Holdings 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 Celsius Holdings 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 Celsius Holdings i.e., Celsius Holdings and Oatly Group go up and down completely randomly.
Pair Corralation between Celsius Holdings and Oatly Group
Given the investment horizon of 90 days Celsius Holdings is expected to generate 0.69 times more return on investment than Oatly Group. However, Celsius Holdings is 1.46 times less risky than Oatly Group. It trades about 0.01 of its potential returns per unit of risk. Oatly Group AB is currently generating about 0.0 per unit of risk. If you would invest 3,712 in Celsius Holdings on August 28, 2024 and sell it today you would lose (737.00) from holding Celsius Holdings or give up 19.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Oatly Group AB
Performance |
| Timeline |
| Celsius Holdings |
| Oatly Group AB |
Celsius Holdings and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Oatly Group
The main advantage of trading using opposite Celsius Holdings and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings 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.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Oatly Group vs. Bellring Brands LLC | Oatly Group vs. Ingredion Incorporated | Oatly Group vs. Nomad Foods | Oatly Group vs. Simply Good Foods |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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