Correlation Between Oatly Group and Kaiser Aluminum
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Kaiser Aluminum 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 Kaiser Aluminum 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 Kaiser Aluminum, you can compare the effects of market volatilities on Oatly Group and Kaiser Aluminum 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 Kaiser Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Kaiser Aluminum.
Diversification Opportunities for Oatly Group and Kaiser Aluminum
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oatly and Kaiser is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Kaiser Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Aluminum 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 Kaiser Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaiser Aluminum has no effect on the direction of Oatly Group i.e., Oatly Group and Kaiser Aluminum go up and down completely randomly.
Pair Corralation between Oatly Group and Kaiser Aluminum
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Kaiser Aluminum. In addition to that, Oatly Group is 6.22 times more volatile than Kaiser Aluminum. It trades about -0.08 of its total potential returns per unit of risk. Kaiser Aluminum is currently generating about -0.09 per unit of volatility. If you would invest 7,291 in Kaiser Aluminum on November 18, 2024 and sell it today you would lose (266.00) from holding Kaiser Aluminum or give up 3.65% 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. Kaiser Aluminum
Performance |
| Timeline |
| Oatly Group AB |
| Kaiser Aluminum |
Oatly Group and Kaiser Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Kaiser Aluminum
The main advantage of trading using opposite Oatly Group and Kaiser Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Kaiser Aluminum 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 Kaiser Aluminum will offset losses from the drop in Kaiser Aluminum's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Kaiser Aluminum vs. Century Aluminum | Kaiser Aluminum vs. China Hongqiao Group | Kaiser Aluminum vs. Constellium Nv | Kaiser Aluminum vs. Alcoa Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |