Correlation Between Oatly Group and AerCap Holdings
Can any of the company-specific risk be diversified away by investing in both Oatly Group and AerCap Holdings 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 Oatly Group and AerCap Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oatly Group AB and AerCap Holdings NV, you can compare the effects of market volatilities on Oatly Group and AerCap Holdings 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 Oatly Group with a short position of AerCap Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and AerCap Holdings.
Diversification Opportunities for Oatly Group and AerCap Holdings
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oatly and AerCap is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and AerCap Holdings NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AerCap Holdings NV and Oatly Group 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 Oatly Group AB are associated (or correlated) with AerCap Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AerCap Holdings NV has no effect on the direction of Oatly Group i.e., Oatly Group and AerCap Holdings go up and down completely randomly.
Pair Corralation between Oatly Group and AerCap Holdings
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the AerCap Holdings. In addition to that, Oatly Group is 3.74 times more volatile than AerCap Holdings NV. It trades about -0.02 of its total potential returns per unit of risk. AerCap Holdings NV is currently generating about 0.1 per unit of volatility. If you would invest 6,157 in AerCap Holdings NV on August 29, 2024 and sell it today you would earn a total of 3,752 from holding AerCap Holdings NV or generate 60.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. AerCap Holdings NV
Performance |
| Timeline |
| Oatly Group AB |
| AerCap Holdings NV |
Oatly Group and AerCap Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and AerCap Holdings
The main advantage of trading using opposite Oatly Group and AerCap Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, AerCap Holdings 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 AerCap Holdings will offset losses from the drop in AerCap Holdings' long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. GATX Corporation |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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