Correlation Between MYR and Oatly Group
Can any of the company-specific risk be diversified away by investing in both MYR 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 MYR and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYR Group and Oatly Group AB, you can compare the effects of market volatilities on MYR 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 MYR with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYR and Oatly Group.
Diversification Opportunities for MYR and Oatly Group
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MYR and Oatly is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding MYR Group 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 MYR 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 MYR Group 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 MYR i.e., MYR and Oatly Group go up and down completely randomly.
Pair Corralation between MYR and Oatly Group
Given the investment horizon of 90 days MYR Group is expected to generate 0.46 times more return on investment than Oatly Group. However, MYR Group is 2.16 times less risky than Oatly Group. It trades about 0.34 of its potential returns per unit of risk. Oatly Group AB is currently generating about -0.07 per unit of risk. If you would invest 13,009 in MYR Group on September 2, 2024 and sell it today you would earn a total of 2,781 from holding MYR Group or generate 21.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYR Group vs. Oatly Group AB
Performance |
| Timeline |
| MYR Group |
| Oatly Group AB |
MYR and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYR and Oatly Group
The main advantage of trading using opposite MYR and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYR 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.| MYR vs. Comfort Systems USA | MYR vs. Granite Construction Incorporated | MYR vs. Dycom Industries | MYR vs. MasTec Inc |
| Oatly Group vs. Campbell Soup | Oatly Group vs. ConAgra Foods | Oatly Group vs. Hormel Foods | Oatly Group vs. Kellanova |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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