Correlation Between Playstudios and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Playstudios 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 Playstudios and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playstudios and Oatly Group AB, you can compare the effects of market volatilities on Playstudios 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 Playstudios with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playstudios and Oatly Group.
Diversification Opportunities for Playstudios and Oatly Group
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playstudios and Oatly is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Playstudios 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 Playstudios 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 Playstudios 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 Playstudios i.e., Playstudios and Oatly Group go up and down completely randomly.
Pair Corralation between Playstudios and Oatly Group
Given the investment horizon of 90 days Playstudios is expected to generate 0.67 times more return on investment than Oatly Group. However, Playstudios is 1.5 times less risky than Oatly Group. It trades about 0.33 of its potential returns per unit of risk. Oatly Group AB is currently generating about -0.04 per unit of risk. If you would invest 139.00 in Playstudios on August 28, 2024 and sell it today you would earn a total of 42.00 from holding Playstudios or generate 30.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playstudios vs. Oatly Group AB
Performance |
| Timeline |
| Playstudios |
| Oatly Group AB |
Playstudios and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playstudios and Oatly Group
The main advantage of trading using opposite Playstudios and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playstudios 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.| Playstudios vs. SohuCom | Playstudios vs. Snail, Class A | Playstudios vs. Playtika Holding Corp | Playstudios vs. Golden Matrix Group |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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