Correlation Between Post Holdings and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Post Holdings and Oatly Group 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 Post Holdings and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Post Holdings and Oatly Group AB, you can compare the effects of market volatilities on Post Holdings and Oatly Group 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 Post Holdings with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post Holdings and Oatly Group.
Diversification Opportunities for Post Holdings and Oatly Group
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Post and Oatly is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Post Holdings and Oatly Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oatly Group AB and Post Holdings 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 Post Holdings are associated (or correlated) with Oatly Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oatly Group AB has no effect on the direction of Post Holdings i.e., Post Holdings and Oatly Group go up and down completely randomly.
Pair Corralation between Post Holdings and Oatly Group
Given the investment horizon of 90 days Post Holdings is expected to generate 37.35 times less return on investment than Oatly Group. But when comparing it to its historical volatility, Post Holdings is 38.96 times less risky than Oatly Group. It trades about 0.04 of its potential returns per unit of risk. Oatly Group AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 220.00 in Oatly Group AB on November 19, 2024 and sell it today you would earn a total of 770.00 from holding Oatly Group AB or generate 350.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Post Holdings vs. Oatly Group AB
Performance |
| Timeline |
| Post Holdings |
| Oatly Group AB |
Post Holdings and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post Holdings and Oatly Group
The main advantage of trading using opposite Post Holdings and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post Holdings position performs unexpectedly, Oatly Group 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 Oatly Group will offset losses from the drop in Oatly Group's long position.| Post Holdings vs. Simply Good Foods | Post Holdings vs. Treehouse Foods | Post Holdings vs. J J Snack | Post Holdings vs. Central Garden Pet |
| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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