Correlation Between Oatly Group and Valvoline
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Valvoline 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 Valvoline 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 Valvoline, you can compare the effects of market volatilities on Oatly Group and Valvoline 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 Valvoline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Valvoline.
Diversification Opportunities for Oatly Group and Valvoline
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oatly and Valvoline is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Valvoline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valvoline 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 Valvoline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valvoline has no effect on the direction of Oatly Group i.e., Oatly Group and Valvoline go up and down completely randomly.
Pair Corralation between Oatly Group and Valvoline
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Valvoline. In addition to that, Oatly Group is 2.36 times more volatile than Valvoline. It trades about -0.06 of its total potential returns per unit of risk. Valvoline is currently generating about -0.02 per unit of volatility. If you would invest 4,058 in Valvoline on September 3, 2024 and sell it today you would lose (87.00) from holding Valvoline or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Valvoline
Performance |
| Timeline |
| Oatly Group AB |
| Valvoline |
Oatly Group and Valvoline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Valvoline
The main advantage of trading using opposite Oatly Group and Valvoline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Valvoline 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 Valvoline will offset losses from the drop in Valvoline's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Valvoline vs. Cosan SA ADR | Valvoline vs. Delek Energy | Valvoline vs. Crossamerica Partners LP | Valvoline vs. Par Pacific 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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