Correlation Between Canlan Ice and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Oatly Group AB, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Oatly Group.
Diversification Opportunities for Canlan Ice and Oatly Group
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canlan and Oatly is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports 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 Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Oatly Group go up and down completely randomly.
Pair Corralation between Canlan Ice and Oatly Group
If you would invest 297.00 in Canlan Ice Sports on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Canlan Ice Sports or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Oatly Group AB
Performance |
| Timeline |
| Canlan Ice Sports |
| Oatly Group AB |
Canlan Ice and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Oatly Group
The main advantage of trading using opposite Canlan Ice and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. Yuexiu Transport Infrastructure | Canlan Ice vs. Western Copper and | Canlan Ice vs. Alto Neuroscience, | Canlan Ice vs. Asure Software |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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