Correlation Between Oatly Group and Champion Gaming
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Champion Gaming 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 Champion Gaming 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 Champion Gaming Group, you can compare the effects of market volatilities on Oatly Group and Champion Gaming 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 Champion Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Champion Gaming.
Diversification Opportunities for Oatly Group and Champion Gaming
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oatly and Champion is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Champion Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Gaming Group 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 Champion Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Gaming Group has no effect on the direction of Oatly Group i.e., Oatly Group and Champion Gaming go up and down completely randomly.
Pair Corralation between Oatly Group and Champion Gaming
Given the investment horizon of 90 days Oatly Group AB is expected to generate 0.18 times more return on investment than Champion Gaming. However, Oatly Group AB is 5.46 times less risky than Champion Gaming. It trades about -0.08 of its potential returns per unit of risk. Champion Gaming Group is currently generating about -0.23 per unit of risk. If you would invest 70.00 in Oatly Group AB on October 13, 2024 and sell it today you would lose (5.00) from holding Oatly Group AB or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Oatly Group AB vs. Champion Gaming Group
Performance |
| Timeline |
| Oatly Group AB |
| Champion Gaming Group |
Oatly Group and Champion Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Champion Gaming
The main advantage of trading using opposite Oatly Group and Champion Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Champion Gaming 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 Champion Gaming will offset losses from the drop in Champion Gaming's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Champion Gaming vs. Constellation Brands Class | Champion Gaming vs. Haemonetics | Champion Gaming vs. Loud Beverage Group | Champion Gaming vs. Oatly Group AB |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |