Correlation Between Oatly Group and Genocea Biosciences
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Genocea Biosciences 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 Genocea Biosciences 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 Genocea Biosciences, you can compare the effects of market volatilities on Oatly Group and Genocea Biosciences 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 Genocea Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Genocea Biosciences.
Diversification Opportunities for Oatly Group and Genocea Biosciences
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oatly and Genocea is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Genocea Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genocea Biosciences 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 Genocea Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genocea Biosciences has no effect on the direction of Oatly Group i.e., Oatly Group and Genocea Biosciences go up and down completely randomly.
Pair Corralation between Oatly Group and Genocea Biosciences
If you would invest 0.02 in Genocea Biosciences on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Genocea Biosciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Oatly Group AB vs. Genocea Biosciences
Performance |
| Timeline |
| Oatly Group AB |
| Genocea Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oatly Group and Genocea Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Genocea Biosciences
The main advantage of trading using opposite Oatly Group and Genocea Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Genocea Biosciences 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 Genocea Biosciences will offset losses from the drop in Genocea Biosciences' long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Genocea Biosciences vs. HF Sinclair Corp | Genocea Biosciences vs. Catalyst Pharmaceuticals | Genocea Biosciences vs. BioNTech SE | Genocea Biosciences vs. Inhibrx |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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