Correlation Between Oatly Group and Previsto International
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Previsto International 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 Previsto International 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 Previsto International Holdings, you can compare the effects of market volatilities on Oatly Group and Previsto International 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 Previsto International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Previsto International.
Diversification Opportunities for Oatly Group and Previsto International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oatly and Previsto is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Previsto International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Previsto International 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 Previsto International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Previsto International has no effect on the direction of Oatly Group i.e., Oatly Group and Previsto International go up and down completely randomly.
Pair Corralation between Oatly Group and Previsto International
If you would invest 78.00 in Oatly Group AB on September 14, 2024 and sell it today you would lose (9.20) from holding Oatly Group AB or give up 11.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Oatly Group AB vs. Previsto International Holding
Performance |
| Timeline |
| Oatly Group AB |
| Previsto International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oatly Group and Previsto International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Previsto International
The main advantage of trading using opposite Oatly Group and Previsto International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Previsto International 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 Previsto International will offset losses from the drop in Previsto International's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Previsto International vs. The Coca Cola | Previsto International vs. Oatly Group AB | Previsto International vs. Stepan Company | Previsto International vs. Mesa Air Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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