Correlation Between Oatly Group and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Thai Oil 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 Thai Oil 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 Thai Oil Public, you can compare the effects of market volatilities on Oatly Group and Thai Oil 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 Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Thai Oil.
Diversification Opportunities for Oatly Group and Thai Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oatly and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Thai Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Oil Public 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 Thai Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Oil Public has no effect on the direction of Oatly Group i.e., Oatly Group and Thai Oil go up and down completely randomly.
Pair Corralation between Oatly Group and Thai Oil
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Thai Oil. In addition to that, Oatly Group is 4.7 times more volatile than Thai Oil Public. It trades about -0.09 of its total potential returns per unit of risk. Thai Oil Public is currently generating about -0.11 per unit of volatility. If you would invest 156.00 in Thai Oil Public on September 3, 2024 and sell it today you would lose (12.00) from holding Thai Oil Public or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 58.9% |
| Values | Daily Returns |
Oatly Group AB vs. Thai Oil Public
Performance |
| Timeline |
| Oatly Group AB |
| Thai Oil Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oatly Group and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Thai Oil
The main advantage of trading using opposite Oatly Group and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Thai Oil 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 Thai Oil will offset losses from the drop in Thai Oil's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Thai Oil vs. Zhihu Inc ADR | Thai Oil vs. Dave Busters Entertainment | Thai Oil vs. Weibo Corp | Thai Oil vs. RCS MediaGroup SpA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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