Correlation Between Oatly Group and Aldel Financial
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Aldel Financial 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 Aldel Financial 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 Aldel Financial II, you can compare the effects of market volatilities on Oatly Group and Aldel Financial 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 Aldel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Aldel Financial.
Diversification Opportunities for Oatly Group and Aldel Financial
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oatly and Aldel is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Aldel Financial II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aldel Financial II 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 Aldel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aldel Financial II has no effect on the direction of Oatly Group i.e., Oatly Group and Aldel Financial go up and down completely randomly.
Pair Corralation between Oatly Group and Aldel Financial
Given the investment horizon of 90 days Oatly Group AB is expected to generate 34.33 times more return on investment than Aldel Financial. However, Oatly Group is 34.33 times more volatile than Aldel Financial II. It trades about 0.05 of its potential returns per unit of risk. Aldel Financial II is currently generating about 0.08 per unit of risk. If you would invest 69.00 in Oatly Group AB on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Oatly Group AB or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Aldel Financial II
Performance |
| Timeline |
| Oatly Group AB |
| Aldel Financial II |
Oatly Group and Aldel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Aldel Financial
The main advantage of trading using opposite Oatly Group and Aldel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Aldel Financial 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 Aldel Financial will offset losses from the drop in Aldel Financial's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Aldel Financial vs. Distoken Acquisition | Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. YHN Acquisition I | Aldel Financial vs. YHN Acquisition I |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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