Correlation Between Cleantech Power and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Cleantech Power 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 Cleantech Power and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleantech Power Corp and Oatly Group AB, you can compare the effects of market volatilities on Cleantech Power 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 Cleantech Power with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleantech Power and Oatly Group.
Diversification Opportunities for Cleantech Power and Oatly Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cleantech and Oatly is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cleantech Power Corp 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 Cleantech Power 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 Cleantech Power Corp 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 Cleantech Power i.e., Cleantech Power and Oatly Group go up and down completely randomly.
Pair Corralation between Cleantech Power and Oatly Group
If you would invest 65.00 in Oatly Group AB on September 19, 2024 and sell it today you would earn a total of 1.00 from holding Oatly Group AB or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleantech Power Corp vs. Oatly Group AB
Performance |
| Timeline |
| Cleantech Power Corp |
| Oatly Group AB |
Cleantech Power and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleantech Power and Oatly Group
The main advantage of trading using opposite Cleantech Power and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleantech Power 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.| Cleantech Power vs. First Ship Lease | Cleantech Power vs. Global Ship Lease | Cleantech Power vs. NetEase | Cleantech Power vs. NH Foods Ltd |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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