Correlation Between Oatly Group and Getty Images
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Getty Images 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 Getty Images 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 Getty Images Holdings, you can compare the effects of market volatilities on Oatly Group and Getty Images 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 Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Getty Images.
Diversification Opportunities for Oatly Group and Getty Images
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oatly and Getty is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Oatly Group i.e., Oatly Group and Getty Images go up and down completely randomly.
Pair Corralation between Oatly Group and Getty Images
Given the investment horizon of 90 days Oatly Group AB is expected to generate 1.13 times more return on investment than Getty Images. However, Oatly Group is 1.13 times more volatile than Getty Images Holdings. It trades about -0.04 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.24 per unit of risk. If you would invest 81.00 in Oatly Group AB on August 28, 2024 and sell it today you would lose (7.00) from holding Oatly Group AB or give up 8.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Getty Images Holdings
Performance |
| Timeline |
| Oatly Group AB |
| Getty Images Holdings |
Oatly Group and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Getty Images
The main advantage of trading using opposite Oatly Group and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| Oatly Group vs. Bellring Brands LLC | Oatly Group vs. Ingredion Incorporated | Oatly Group vs. Nomad Foods | Oatly Group vs. Simply Good Foods |
| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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