Correlation Between Oatly Group and Gap,
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Gap, 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 Gap, 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 The Gap,, you can compare the effects of market volatilities on Oatly Group and Gap, 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 Gap,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Gap,.
Diversification Opportunities for Oatly Group and Gap,
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oatly and Gap, is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and The Gap, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gap, 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 Gap,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gap, has no effect on the direction of Oatly Group i.e., Oatly Group and Gap, go up and down completely randomly.
Pair Corralation between Oatly Group and Gap,
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Gap,. In addition to that, Oatly Group is 1.71 times more volatile than The Gap,. It trades about -0.09 of its total potential returns per unit of risk. The Gap, is currently generating about 0.22 per unit of volatility. If you would invest 2,077 in The Gap, on September 1, 2024 and sell it today you would earn a total of 348.00 from holding The Gap, or generate 16.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. The Gap,
Performance |
| Timeline |
| Oatly Group AB |
| Gap, |
Oatly Group and Gap, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Gap,
The main advantage of trading using opposite Oatly Group and Gap, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Gap, 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 Gap, will offset losses from the drop in Gap,'s long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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