Correlation Between Oatly Group and Primoris Services
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Primoris Services 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 Primoris Services 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 Primoris Services, you can compare the effects of market volatilities on Oatly Group and Primoris Services 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 Primoris Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Primoris Services.
Diversification Opportunities for Oatly Group and Primoris Services
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oatly and Primoris is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Primoris Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primoris Services 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 Primoris Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primoris Services has no effect on the direction of Oatly Group i.e., Oatly Group and Primoris Services go up and down completely randomly.
Pair Corralation between Oatly Group and Primoris Services
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Primoris Services. In addition to that, Oatly Group is 2.48 times more volatile than Primoris Services. It trades about 0.0 of its total potential returns per unit of risk. Primoris Services is currently generating about 0.14 per unit of volatility. If you would invest 2,095 in Primoris Services on September 2, 2024 and sell it today you would earn a total of 6,276 from holding Primoris Services or generate 299.57% 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. Primoris Services
Performance |
| Timeline |
| Oatly Group AB |
| Primoris Services |
Oatly Group and Primoris Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Primoris Services
The main advantage of trading using opposite Oatly Group and Primoris Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Primoris Services 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 Primoris Services will offset losses from the drop in Primoris Services' long position.| Oatly Group vs. Campbell Soup | Oatly Group vs. ConAgra Foods | Oatly Group vs. Hormel Foods | Oatly Group vs. Kellanova |
| Primoris Services vs. MYR Group | Primoris Services vs. Granite Construction Incorporated | Primoris Services vs. Matrix Service Co | Primoris Services vs. Api Group 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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