Correlation Between Oatly Group and AMGEN

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Oatly Group and AMGEN 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 AMGEN 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 AMGEN INC, you can compare the effects of market volatilities on Oatly Group and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and AMGEN.

Diversification Opportunities for Oatly Group and AMGEN

0.67
  Correlation Coefficient

Poor diversification

The 3 months correlation between Oatly and AMGEN is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC has no effect on the direction of Oatly Group i.e., Oatly Group and AMGEN go up and down completely randomly.

Pair Corralation between Oatly Group and AMGEN

Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the AMGEN. In addition to that, Oatly Group is 4.39 times more volatile than AMGEN INC. It trades about -0.04 of its total potential returns per unit of risk. AMGEN INC is currently generating about -0.03 per unit of volatility. If you would invest  7,004  in AMGEN INC on September 14, 2024 and sell it today you would lose (468.00) from holding AMGEN INC or give up 6.68% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy83.13%
ValuesDaily Returns

Oatly Group AB  vs.  AMGEN INC

 Performance 
       Timeline  
Oatly Group AB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Oatly Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
AMGEN INC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AMGEN INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for AMGEN INC investors.

Oatly Group and AMGEN Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oatly Group and AMGEN

The main advantage of trading using opposite Oatly Group and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN's long position.
Oatly Group vs. Monster Beverage Corp
Oatly Group vs. Vita Coco
Oatly Group vs. PepsiCo
Oatly Group vs. The Coca Cola
The idea behind Oatly Group AB and AMGEN INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
AMGEN vs. AEP TEX INC
AMGEN vs. US BANK NATIONAL
AMGEN vs. Applied Blockchain
AMGEN vs. BigBearai Holdings
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
CEOs Directory
Screen CEOs from public companies around the world
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY