Correlation Between Oatly Group and Graham

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Graham 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 Graham 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 Graham Holdings 575, you can compare the effects of market volatilities on Oatly Group and Graham 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 Graham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Graham.

Diversification Opportunities for Oatly Group and Graham

0.13
  Correlation Coefficient

Average diversification

The 3 months correlation between Oatly and Graham is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Graham Holdings 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings 575 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 Graham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings 575 has no effect on the direction of Oatly Group i.e., Oatly Group and Graham go up and down completely randomly.

Pair Corralation between Oatly Group and Graham

Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Graham. In addition to that, Oatly Group is 9.6 times more volatile than Graham Holdings 575. It trades about -0.05 of its total potential returns per unit of risk. Graham Holdings 575 is currently generating about -0.11 per unit of volatility. If you would invest  10,014  in Graham Holdings 575 on September 12, 2024 and sell it today you would lose (65.00) from holding Graham Holdings 575 or give up 0.65% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy57.14%
ValuesDaily Returns

Oatly Group AB  vs.  Graham Holdings 575

 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 fragile 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.
Graham Holdings 575 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Graham Holdings 575 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Graham is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Oatly Group and Graham Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oatly Group and Graham

The main advantage of trading using opposite Oatly Group and Graham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Graham 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 Graham will offset losses from the drop in Graham's long position.
The idea behind Oatly Group AB and Graham Holdings 575 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.
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Global Correlations
Find global opportunities by holding instruments from different markets