Correlation Between Oatly Group and Ihuman
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Ihuman 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 Ihuman 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 Ihuman Inc, you can compare the effects of market volatilities on Oatly Group and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Ihuman.
Diversification Opportunities for Oatly Group and Ihuman
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oatly and Ihuman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Oatly Group i.e., Oatly Group and Ihuman go up and down completely randomly.
Pair Corralation between Oatly Group and Ihuman
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Ihuman. In addition to that, Oatly Group is 2.66 times more volatile than Ihuman Inc. It trades about -0.07 of its total potential returns per unit of risk. Ihuman Inc is currently generating about -0.17 per unit of volatility. If you would invest 181.00 in Ihuman Inc on August 31, 2024 and sell it today you would lose (16.00) from holding Ihuman Inc or give up 8.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Ihuman Inc
Performance |
| Timeline |
| Oatly Group AB |
| Ihuman Inc |
Oatly Group and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Ihuman
The main advantage of trading using opposite Oatly Group and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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