Correlation Between Eq Energy and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Eq Energy 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 Eq Energy and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eq Energy Drink and Oatly Group AB, you can compare the effects of market volatilities on Eq Energy 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 Eq Energy with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eq Energy and Oatly Group.
Diversification Opportunities for Eq Energy and Oatly Group
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EQLB and Oatly is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eq Energy Drink 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 Eq Energy 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 Eq Energy Drink 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 Eq Energy i.e., Eq Energy and Oatly Group go up and down completely randomly.
Pair Corralation between Eq Energy and Oatly Group
Given the investment horizon of 90 days Eq Energy Drink is expected to generate 4.4 times more return on investment than Oatly Group. However, Eq Energy is 4.4 times more volatile than Oatly Group AB. It trades about 0.11 of its potential returns per unit of risk. Oatly Group AB is currently generating about -0.03 per unit of risk. If you would invest 0.08 in Eq Energy Drink on September 12, 2024 and sell it today you would earn a total of 0.08 from holding Eq Energy Drink or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Eq Energy Drink vs. Oatly Group AB
Performance |
| Timeline |
| Eq Energy Drink |
| Oatly Group AB |
Eq Energy and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eq Energy and Oatly Group
The main advantage of trading using opposite Eq Energy and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eq Energy 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.| Eq Energy vs. National Beverage Corp | Eq Energy vs. Celsius Holdings | Eq Energy vs. Monster Beverage Corp | Eq Energy vs. Coca Cola Femsa SAB |
| Oatly Group vs. Flow Beverage Corp | Oatly Group vs. Fbec Worldwide | Oatly Group vs. Hill Street Beverage | Oatly Group vs. Eq Energy Drink |
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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