Correlation Between Oatly Group and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Siriuspoint 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 Siriuspoint 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 Siriuspoint, you can compare the effects of market volatilities on Oatly Group and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Siriuspoint.
Diversification Opportunities for Oatly Group and Siriuspoint
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oatly and Siriuspoint is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Oatly Group i.e., Oatly Group and Siriuspoint go up and down completely randomly.
Pair Corralation between Oatly Group and Siriuspoint
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Siriuspoint. In addition to that, Oatly Group is 2.41 times more volatile than Siriuspoint. It trades about -0.07 of its total potential returns per unit of risk. Siriuspoint is currently generating about 0.28 per unit of volatility. If you would invest 1,335 in Siriuspoint on September 2, 2024 and sell it today you would earn a total of 207.00 from holding Siriuspoint or generate 15.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Siriuspoint
Performance |
| Timeline |
| Oatly Group AB |
| Siriuspoint |
Oatly Group and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Siriuspoint
The main advantage of trading using opposite Oatly Group and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| Oatly Group vs. Campbell Soup | Oatly Group vs. ConAgra Foods | Oatly Group vs. Hormel Foods | Oatly Group vs. Kellanova |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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