Correlation Between Oatly Group and NetSol Technologies
Can any of the company-specific risk be diversified away by investing in both Oatly Group and NetSol Technologies 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 NetSol Technologies 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 NetSol Technologies, you can compare the effects of market volatilities on Oatly Group and NetSol Technologies 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 NetSol Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and NetSol Technologies.
Diversification Opportunities for Oatly Group and NetSol Technologies
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oatly and NetSol is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and NetSol Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetSol Technologies 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 NetSol Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetSol Technologies has no effect on the direction of Oatly Group i.e., Oatly Group and NetSol Technologies go up and down completely randomly.
Pair Corralation between Oatly Group and NetSol Technologies
Given the investment horizon of 90 days Oatly Group AB is expected to generate 2.04 times more return on investment than NetSol Technologies. However, Oatly Group is 2.04 times more volatile than NetSol Technologies. It trades about -0.07 of its potential returns per unit of risk. NetSol Technologies is currently generating about -0.17 per unit of risk. If you would invest 80.00 in Oatly Group AB on September 2, 2024 and sell it today you would lose (10.00) from holding Oatly Group AB or give up 12.5% 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. NetSol Technologies
Performance |
| Timeline |
| Oatly Group AB |
| NetSol Technologies |
Oatly Group and NetSol Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and NetSol Technologies
The main advantage of trading using opposite Oatly Group and NetSol Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, NetSol Technologies 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 NetSol Technologies will offset losses from the drop in NetSol Technologies' long position.| Oatly Group vs. Campbell Soup | Oatly Group vs. ConAgra Foods | Oatly Group vs. Hormel Foods | Oatly Group vs. Kellanova |
| NetSol Technologies vs. MIND CTI | NetSol Technologies vs. PDF Solutions | NetSol Technologies vs. Research Solutions | NetSol Technologies vs. Red Violet |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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