Correlation Between Oatly Group and PVH Corp
Can any of the company-specific risk be diversified away by investing in both Oatly Group and PVH Corp 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 PVH Corp 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 PVH Corp, you can compare the effects of market volatilities on Oatly Group and PVH Corp 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 PVH Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and PVH Corp.
Diversification Opportunities for Oatly Group and PVH Corp
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oatly and PVH is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and PVH Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVH 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 PVH Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVH Corp has no effect on the direction of Oatly Group i.e., Oatly Group and PVH Corp go up and down completely randomly.
Pair Corralation between Oatly Group and PVH Corp
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the PVH Corp. In addition to that, Oatly Group is 2.1 times more volatile than PVH Corp. It trades about 0.0 of its total potential returns per unit of risk. PVH Corp is currently generating about 0.04 per unit of volatility. If you would invest 7,320 in PVH Corp on September 3, 2024 and sell it today you would earn a total of 3,517 from holding PVH Corp or generate 48.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. PVH Corp
Performance |
| Timeline |
| Oatly Group AB |
| PVH Corp |
Oatly Group and PVH Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and PVH Corp
The main advantage of trading using opposite Oatly Group and PVH Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, PVH Corp 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 PVH Corp will offset losses from the drop in PVH Corp's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
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.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |