Correlation Between Oatly Group and FEDEX
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By analyzing existing cross correlation between Oatly Group AB and FEDEX P, you can compare the effects of market volatilities on Oatly Group and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and FEDEX.
Diversification Opportunities for Oatly Group and FEDEX
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oatly and FEDEX is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and FEDEX P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P has no effect on the direction of Oatly Group i.e., Oatly Group and FEDEX go up and down completely randomly.
Pair Corralation between Oatly Group and FEDEX
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the FEDEX. In addition to that, Oatly Group is 5.8 times more volatile than FEDEX P. It trades about 0.0 of its total potential returns per unit of risk. FEDEX P is currently generating about 0.02 per unit of volatility. If you would invest 8,929 in FEDEX P on August 30, 2024 and sell it today you would earn a total of 612.00 from holding FEDEX P or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Oatly Group AB vs. FEDEX P
Performance |
| Timeline |
| Oatly Group AB |
| FEDEX P |
Oatly Group and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and FEDEX
The main advantage of trading using opposite Oatly Group and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| FEDEX vs. National Beverage Corp | FEDEX vs. Estee Lauder Companies | FEDEX vs. Oatly Group AB | FEDEX vs. Monster Beverage Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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