Correlation Between Oatly Group and Amgen
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Amgen 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 Amgen 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 Amgen Inc, you can compare the effects of market volatilities on Oatly Group and Amgen 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 Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Amgen.
Diversification Opportunities for Oatly Group and Amgen
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oatly and Amgen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc 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 Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of Oatly Group i.e., Oatly Group and Amgen go up and down completely randomly.
Pair Corralation between Oatly Group and Amgen
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Amgen. In addition to that, Oatly Group is 2.84 times more volatile than Amgen Inc. It trades about -0.05 of its total potential returns per unit of risk. Amgen Inc is currently generating about -0.1 per unit of volatility. If you would invest 32,688 in Amgen Inc on August 28, 2024 and sell it today you would lose (3,288) from holding Amgen Inc or give up 10.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Amgen Inc
Performance |
| Timeline |
| Oatly Group AB |
| Amgen Inc |
Oatly Group and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Amgen
The main advantage of trading using opposite Oatly Group and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Amgen 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 Amgen will offset losses from the drop in Amgen's long position.| Oatly Group vs. Bellring Brands LLC | Oatly Group vs. Ingredion Incorporated | Oatly Group vs. Nomad Foods | Oatly Group vs. Simply Good Foods |
| Amgen vs. Eliem Therapeutics | Amgen vs. Scpharmaceuticals | Amgen vs. Milestone Pharmaceuticals | Amgen vs. Seres Therapeutics |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |