Correlation Between Oatly Group and Neogen
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Neogen 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 Neogen 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 Neogen, you can compare the effects of market volatilities on Oatly Group and Neogen 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 Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Neogen.
Diversification Opportunities for Oatly Group and Neogen
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oatly and Neogen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen 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 Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of Oatly Group i.e., Oatly Group and Neogen go up and down completely randomly.
Pair Corralation between Oatly Group and Neogen
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Neogen. In addition to that, Oatly Group is 1.19 times more volatile than Neogen. It trades about -0.22 of its total potential returns per unit of risk. Neogen is currently generating about -0.06 per unit of volatility. If you would invest 1,194 in Neogen on November 3, 2024 and sell it today you would lose (48.00) from holding Neogen or give up 4.02% 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. Neogen
Performance |
| Timeline |
| Oatly Group AB |
| Neogen |
Oatly Group and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Neogen
The main advantage of trading using opposite Oatly Group and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Neogen vs. Qiagen NV | Neogen vs. Aclaris Therapeutics | Neogen vs. IQVIA Holdings | Neogen vs. Medpace Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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