Correlation Between Oatly Group and Aquestive Therapeutics
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Aquestive Therapeutics 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 Aquestive Therapeutics 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 Aquestive Therapeutics, you can compare the effects of market volatilities on Oatly Group and Aquestive Therapeutics 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 Aquestive Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Aquestive Therapeutics.
Diversification Opportunities for Oatly Group and Aquestive Therapeutics
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oatly and Aquestive is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Aquestive Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquestive Therapeutics 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 Aquestive Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquestive Therapeutics has no effect on the direction of Oatly Group i.e., Oatly Group and Aquestive Therapeutics go up and down completely randomly.
Pair Corralation between Oatly Group and Aquestive Therapeutics
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Aquestive Therapeutics. In addition to that, Oatly Group is 1.07 times more volatile than Aquestive Therapeutics. It trades about -0.05 of its total potential returns per unit of risk. Aquestive Therapeutics is currently generating about 0.04 per unit of volatility. If you would invest 455.00 in Aquestive Therapeutics on August 28, 2024 and sell it today you would earn a total of 26.00 from holding Aquestive Therapeutics or generate 5.71% 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. Aquestive Therapeutics
Performance |
| Timeline |
| Oatly Group AB |
| Aquestive Therapeutics |
Oatly Group and Aquestive Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Aquestive Therapeutics
The main advantage of trading using opposite Oatly Group and Aquestive Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Aquestive Therapeutics 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 Aquestive Therapeutics will offset losses from the drop in Aquestive Therapeutics' long position.| Oatly Group vs. Bellring Brands LLC | Oatly Group vs. Ingredion Incorporated | Oatly Group vs. Nomad Foods | Oatly Group vs. Simply Good Foods |
| Aquestive Therapeutics vs. Capricor Therapeutics | Aquestive Therapeutics vs. Soleno Therapeutics | Aquestive Therapeutics vs. Bio Path Holdings | Aquestive Therapeutics vs. Moleculin Biotech |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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