Correlation Between Oatly Group and Brunswick
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Brunswick 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 Brunswick 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 Brunswick, you can compare the effects of market volatilities on Oatly Group and Brunswick 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 Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Brunswick.
Diversification Opportunities for Oatly Group and Brunswick
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oatly and Brunswick is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick 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 Brunswick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick has no effect on the direction of Oatly Group i.e., Oatly Group and Brunswick go up and down completely randomly.
Pair Corralation between Oatly Group and Brunswick
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Brunswick. In addition to that, Oatly Group is 2.43 times more volatile than Brunswick. It trades about -0.05 of its total potential returns per unit of risk. Brunswick is currently generating about 0.0 per unit of volatility. If you would invest 8,117 in Brunswick on August 31, 2024 and sell it today you would lose (55.00) from holding Brunswick or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Brunswick
Performance |
| Timeline |
| Oatly Group AB |
| Brunswick |
Oatly Group and Brunswick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Brunswick
The main advantage of trading using opposite Oatly Group and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Brunswick 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 Brunswick will offset losses from the drop in Brunswick's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Brunswick vs. MCBC Holdings | Brunswick vs. Marine Products | Brunswick vs. Winnebago Industries | Brunswick vs. LCI Industries |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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