Correlation Between Oatly Group and Sapiens International
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Sapiens International 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 Sapiens International 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 Sapiens International, you can compare the effects of market volatilities on Oatly Group and Sapiens International 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 Sapiens International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Sapiens International.
Diversification Opportunities for Oatly Group and Sapiens International
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oatly and Sapiens is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Sapiens International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sapiens International 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 Sapiens International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sapiens International has no effect on the direction of Oatly Group i.e., Oatly Group and Sapiens International go up and down completely randomly.
Pair Corralation between Oatly Group and Sapiens International
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Sapiens International. In addition to that, Oatly Group is 1.82 times more volatile than Sapiens International. It trades about -0.02 of its total potential returns per unit of risk. Sapiens International is currently generating about 0.02 per unit of volatility. If you would invest 2,565 in Sapiens International on September 4, 2024 and sell it today you would earn a total of 181.00 from holding Sapiens International or generate 7.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Oatly Group AB vs. Sapiens International
Performance |
| Timeline |
| Oatly Group AB |
| Sapiens International |
Oatly Group and Sapiens International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Sapiens International
The main advantage of trading using opposite Oatly Group and Sapiens International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Sapiens International 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 Sapiens International will offset losses from the drop in Sapiens International's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Sapiens International vs. PROS Holdings | Sapiens International vs. Meridianlink | Sapiens International vs. Enfusion | Sapiens International vs. PDF Solutions |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |