Correlation Between Oatly Group and Plutonian Acquisition
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Plutonian Acquisition 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 Plutonian Acquisition 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 Plutonian Acquisition Corp, you can compare the effects of market volatilities on Oatly Group and Plutonian Acquisition 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 Plutonian Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Plutonian Acquisition.
Diversification Opportunities for Oatly Group and Plutonian Acquisition
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oatly and Plutonian is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Plutonian Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plutonian Acquisition 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 Plutonian Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plutonian Acquisition has no effect on the direction of Oatly Group i.e., Oatly Group and Plutonian Acquisition go up and down completely randomly.
Pair Corralation between Oatly Group and Plutonian Acquisition
Given the investment horizon of 90 days Oatly Group AB is expected to generate 0.84 times more return on investment than Plutonian Acquisition. However, Oatly Group AB is 1.19 times less risky than Plutonian Acquisition. It trades about -0.03 of its potential returns per unit of risk. Plutonian Acquisition Corp is currently generating about -0.04 per unit of risk. If you would invest 231.00 in Oatly Group AB on October 29, 2024 and sell it today you would lose (162.00) from holding Oatly Group AB or give up 70.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 64.9% |
| Values | Daily Returns |
Oatly Group AB vs. Plutonian Acquisition Corp
Performance |
| Timeline |
| Oatly Group AB |
| Plutonian Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oatly Group and Plutonian Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Plutonian Acquisition
The main advantage of trading using opposite Oatly Group and Plutonian Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Plutonian Acquisition 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 Plutonian Acquisition will offset losses from the drop in Plutonian Acquisition's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Plutonian Acquisition vs. Pekin Life Insurance | Plutonian Acquisition vs. Willis Lease Finance | Plutonian Acquisition vs. Conifer Holdings, 975 | Plutonian Acquisition vs. Triton International Limited |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| 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 | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |