Correlation Between Oatly Group and Bausch
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By analyzing existing cross correlation between Oatly Group AB and Bausch Health Companies, you can compare the effects of market volatilities on Oatly Group and Bausch 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 Bausch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Bausch.
Diversification Opportunities for Oatly Group and Bausch
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oatly and Bausch is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Bausch Health Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bausch Health Companies 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 Bausch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bausch Health Companies has no effect on the direction of Oatly Group i.e., Oatly Group and Bausch go up and down completely randomly.
Pair Corralation between Oatly Group and Bausch
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Bausch. But the stock apears to be less risky and, when comparing its historical volatility, Oatly Group AB is 17.79 times less risky than Bausch. The stock trades about -0.03 of its potential returns per unit of risk. The Bausch Health Companies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,350 in Bausch Health Companies on October 25, 2024 and sell it today you would earn a total of 2,440 from holding Bausch Health Companies or generate 56.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 25.35% |
| Values | Daily Returns |
Oatly Group AB vs. Bausch Health Companies
Performance |
| Timeline |
| Oatly Group AB |
| Bausch Health Companies |
Oatly Group and Bausch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Bausch
The main advantage of trading using opposite Oatly Group and Bausch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Bausch 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 Bausch will offset losses from the drop in Bausch's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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