Correlation Between Oatly Group and Summit Environmental
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Summit Environmental 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 Summit Environmental 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 Summit Environmental, you can compare the effects of market volatilities on Oatly Group and Summit Environmental 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 Summit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Summit Environmental.
Diversification Opportunities for Oatly Group and Summit Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oatly and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Summit Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Environmental 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 Summit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Environmental has no effect on the direction of Oatly Group i.e., Oatly Group and Summit Environmental go up and down completely randomly.
Pair Corralation between Oatly Group and Summit Environmental
If you would invest 0.01 in Summit Environmental on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Summit Environmental or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Summit Environmental
Performance |
| Timeline |
| Oatly Group AB |
| Summit Environmental |
Oatly Group and Summit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Summit Environmental
The main advantage of trading using opposite Oatly Group and Summit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Summit Environmental 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 Summit Environmental will offset losses from the drop in Summit Environmental's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Summit Environmental vs. Advantage Solutions | Summit Environmental vs. Atlas Corp | Summit Environmental vs. PureCycle Technologies | Summit Environmental vs. WM Technology |
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.
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