Correlation Between Oatly Group and Electrovaya Common
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Electrovaya Common 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 Electrovaya Common 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 Electrovaya Common Shares, you can compare the effects of market volatilities on Oatly Group and Electrovaya Common 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 Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Electrovaya Common.
Diversification Opportunities for Oatly Group and Electrovaya Common
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oatly and Electrovaya is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Electrovaya Common Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya Common Shares 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 Electrovaya Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya Common Shares has no effect on the direction of Oatly Group i.e., Oatly Group and Electrovaya Common go up and down completely randomly.
Pair Corralation between Oatly Group and Electrovaya Common
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Electrovaya Common. In addition to that, Oatly Group is 1.25 times more volatile than Electrovaya Common Shares. It trades about -0.06 of its total potential returns per unit of risk. Electrovaya Common Shares is currently generating about -0.01 per unit of volatility. If you would invest 288.00 in Electrovaya Common Shares on August 30, 2024 and sell it today you would lose (28.00) from holding Electrovaya Common Shares or give up 9.72% 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. Electrovaya Common Shares
Performance |
| Timeline |
| Oatly Group AB |
| Electrovaya Common Shares |
Oatly Group and Electrovaya Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Electrovaya Common
The main advantage of trading using opposite Oatly Group and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Electrovaya Common 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 Electrovaya Common will offset losses from the drop in Electrovaya Common's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Electrovaya Common vs. Bloom Energy Corp | Electrovaya Common vs. Microvast Holdings | Electrovaya Common vs. Solid Power | Electrovaya Common vs. Enovix Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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