Correlation Between Oatly Group and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Celsius Holdings 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 Celsius Holdings 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 Celsius Holdings, you can compare the effects of market volatilities on Oatly Group and Celsius Holdings 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 Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Celsius Holdings.
Diversification Opportunities for Oatly Group and Celsius Holdings
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oatly and Celsius is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings 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 Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of Oatly Group i.e., Oatly Group and Celsius Holdings go up and down completely randomly.
Pair Corralation between Oatly Group and Celsius Holdings
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Celsius Holdings. In addition to that, Oatly Group is 1.46 times more volatile than Celsius Holdings. It trades about 0.0 of its total potential returns per unit of risk. Celsius Holdings is currently generating about 0.0 per unit of volatility. If you would invest 3,781 in Celsius Holdings on August 24, 2024 and sell it today you would lose (850.00) from holding Celsius Holdings or give up 22.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Celsius Holdings
Performance |
| Timeline |
| Oatly Group AB |
| Celsius Holdings |
Oatly Group and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Celsius Holdings
The main advantage of trading using opposite Oatly Group and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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