Correlation Between Oatly Group and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both Oatly Group and JetBlue Airways 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 JetBlue Airways 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 JetBlue Airways Corp, you can compare the effects of market volatilities on Oatly Group and JetBlue Airways 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 JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and JetBlue Airways.
Diversification Opportunities for Oatly Group and JetBlue Airways
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oatly and JetBlue is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and JetBlue Airways Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetBlue Airways Corp 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 JetBlue Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetBlue Airways Corp has no effect on the direction of Oatly Group i.e., Oatly Group and JetBlue Airways go up and down completely randomly.
Pair Corralation between Oatly Group and JetBlue Airways
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the JetBlue Airways. In addition to that, Oatly Group is 1.31 times more volatile than JetBlue Airways Corp. It trades about -0.03 of its total potential returns per unit of risk. JetBlue Airways Corp is currently generating about 0.01 per unit of volatility. If you would invest 742.00 in JetBlue Airways Corp on August 31, 2024 and sell it today you would lose (145.00) from holding JetBlue Airways Corp or give up 19.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. JetBlue Airways Corp
Performance |
| Timeline |
| Oatly Group AB |
| JetBlue Airways Corp |
Oatly Group and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and JetBlue Airways
The main advantage of trading using opposite Oatly Group and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, JetBlue Airways 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 JetBlue Airways will offset losses from the drop in JetBlue Airways' long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| JetBlue Airways vs. Frontier Group Holdings | JetBlue Airways vs. Southwest Airlines | JetBlue Airways vs. United Airlines Holdings | JetBlue Airways vs. American Airlines 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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