Correlation Between Oatly Group and SunOpta
Can any of the company-specific risk be diversified away by investing in both Oatly Group and SunOpta 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 SunOpta 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 SunOpta, you can compare the effects of market volatilities on Oatly Group and SunOpta 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 SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and SunOpta.
Diversification Opportunities for Oatly Group and SunOpta
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oatly and SunOpta is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Oatly Group i.e., Oatly Group and SunOpta go up and down completely randomly.
Pair Corralation between Oatly Group and SunOpta
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the SunOpta. In addition to that, Oatly Group is 1.37 times more volatile than SunOpta. It trades about -0.04 of its total potential returns per unit of risk. SunOpta is currently generating about 0.05 per unit of volatility. If you would invest 561.00 in SunOpta on November 9, 2024 and sell it today you would earn a total of 180.00 from holding SunOpta or generate 32.09% 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. SunOpta
Performance |
| Timeline |
| Oatly Group AB |
| SunOpta |
Oatly Group and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and SunOpta
The main advantage of trading using opposite Oatly Group and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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