Correlation Between Oatly Group and RadNet
Can any of the company-specific risk be diversified away by investing in both Oatly Group and RadNet 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 RadNet 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 RadNet Inc, you can compare the effects of market volatilities on Oatly Group and RadNet 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 RadNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and RadNet.
Diversification Opportunities for Oatly Group and RadNet
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oatly and RadNet is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and RadNet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RadNet Inc 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 RadNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RadNet Inc has no effect on the direction of Oatly Group i.e., Oatly Group and RadNet go up and down completely randomly.
Pair Corralation between Oatly Group and RadNet
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the RadNet. In addition to that, Oatly Group is 2.07 times more volatile than RadNet Inc. It trades about 0.0 of its total potential returns per unit of risk. RadNet Inc is currently generating about 0.12 per unit of volatility. If you would invest 1,947 in RadNet Inc on September 12, 2024 and sell it today you would earn a total of 5,945 from holding RadNet Inc or generate 305.34% 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. RadNet Inc
Performance |
| Timeline |
| Oatly Group AB |
| RadNet Inc |
Oatly Group and RadNet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and RadNet
The main advantage of trading using opposite Oatly Group and RadNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, RadNet 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 RadNet will offset losses from the drop in RadNet's long position.| Oatly Group vs. Flow Beverage Corp | Oatly Group vs. Fbec Worldwide | Oatly Group vs. Hill Street Beverage | Oatly Group vs. Eq Energy Drink |
| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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