Correlation Between Kingsmen Creatives and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Kingsmen Creatives 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 Kingsmen Creatives and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingsmen Creatives and Oatly Group AB, you can compare the effects of market volatilities on Kingsmen Creatives 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 Kingsmen Creatives with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen Creatives and Oatly Group.
Diversification Opportunities for Kingsmen Creatives and Oatly Group
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kingsmen and Oatly is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen Creatives 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 Kingsmen Creatives 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 Kingsmen Creatives 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 Kingsmen Creatives i.e., Kingsmen Creatives and Oatly Group go up and down completely randomly.
Pair Corralation between Kingsmen Creatives and Oatly Group
Assuming the 90 days horizon Kingsmen Creatives is expected to under-perform the Oatly Group. In addition to that, Kingsmen Creatives is 1.26 times more volatile than Oatly Group AB. It trades about -0.22 of its total potential returns per unit of risk. Oatly Group AB is currently generating about -0.26 per unit of volatility. If you would invest 74.00 in Oatly Group AB on September 25, 2024 and sell it today you would lose (12.87) from holding Oatly Group AB or give up 17.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsmen Creatives vs. Oatly Group AB
Performance |
| Timeline |
| Kingsmen Creatives |
| Oatly Group AB |
Kingsmen Creatives and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen Creatives and Oatly Group
The main advantage of trading using opposite Kingsmen Creatives and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen Creatives 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.| Kingsmen Creatives vs. Oatly Group AB | Kingsmen Creatives vs. Molson Coors Brewing | Kingsmen Creatives vs. Constellation Brands Class | Kingsmen Creatives vs. Ambev SA ADR |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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