Correlation Between Oatly Group and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Playtika Holding 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 Playtika Holding 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 Playtika Holding Corp, you can compare the effects of market volatilities on Oatly Group and Playtika Holding 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 Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Playtika Holding.
Diversification Opportunities for Oatly Group and Playtika Holding
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oatly and Playtika is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding 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 Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Oatly Group i.e., Oatly Group and Playtika Holding go up and down completely randomly.
Pair Corralation between Oatly Group and Playtika Holding
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Playtika Holding. In addition to that, Oatly Group is 2.08 times more volatile than Playtika Holding Corp. It trades about 0.0 of its total potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.02 per unit of volatility. If you would invest 816.00 in Playtika Holding Corp on September 2, 2024 and sell it today you would earn a total of 26.00 from holding Playtika Holding Corp or generate 3.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Playtika Holding Corp
Performance |
| Timeline |
| Oatly Group AB |
| Playtika Holding Corp |
Oatly Group and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Playtika Holding
The main advantage of trading using opposite Oatly Group and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Playtika Holding 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 Playtika Holding will offset losses from the drop in Playtika Holding's long position.| Oatly Group vs. Campbell Soup | Oatly Group vs. ConAgra Foods | Oatly Group vs. Hormel Foods | Oatly Group vs. Kellanova |
| Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Snail, Class A | Playtika Holding vs. GameSquare 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |