Correlation Between Oatly Group and Bim Birlesik
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Bim Birlesik 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 Bim Birlesik 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 Bim Birlesik Magazalar, you can compare the effects of market volatilities on Oatly Group and Bim Birlesik 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 Bim Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Bim Birlesik.
Diversification Opportunities for Oatly Group and Bim Birlesik
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oatly and Bim is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Bim Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bim Birlesik Magazalar 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 Bim Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bim Birlesik Magazalar has no effect on the direction of Oatly Group i.e., Oatly Group and Bim Birlesik go up and down completely randomly.
Pair Corralation between Oatly Group and Bim Birlesik
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Bim Birlesik. But the stock apears to be less risky and, when comparing its historical volatility, Oatly Group AB is 1.62 times less risky than Bim Birlesik. The stock trades about -0.05 of its potential returns per unit of risk. The Bim Birlesik Magazalar is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 453.00 in Bim Birlesik Magazalar on September 3, 2024 and sell it today you would earn a total of 527.00 from holding Bim Birlesik Magazalar or generate 116.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Bim Birlesik Magazalar
Performance |
| Timeline |
| Oatly Group AB |
| Bim Birlesik Magazalar |
Oatly Group and Bim Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Bim Birlesik
The main advantage of trading using opposite Oatly Group and Bim Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Bim Birlesik 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 Bim Birlesik will offset losses from the drop in Bim Birlesik's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Bim Birlesik vs. Diamond Estates Wines | Bim Birlesik vs. First Ship Lease | Bim Birlesik vs. Oatly Group AB | Bim Birlesik vs. Willamette Valley Vineyards |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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