Correlation Between Stepstone and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Stepstone 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 Stepstone and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stepstone Group and Oatly Group AB, you can compare the effects of market volatilities on Stepstone 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 Stepstone with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepstone and Oatly Group.
Diversification Opportunities for Stepstone and Oatly Group
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stepstone and Oatly is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone Group 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 Stepstone 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 Stepstone Group 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 Stepstone i.e., Stepstone and Oatly Group go up and down completely randomly.
Pair Corralation between Stepstone and Oatly Group
Given the investment horizon of 90 days Stepstone Group is expected to under-perform the Oatly Group. But the stock apears to be less risky and, when comparing its historical volatility, Stepstone Group is 2.11 times less risky than Oatly Group. The stock trades about -0.21 of its potential returns per unit of risk. The Oatly Group AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 69.00 in Oatly Group AB on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Oatly Group AB or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stepstone Group vs. Oatly Group AB
Performance |
| Timeline |
| Stepstone Group |
| Oatly Group AB |
Stepstone and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepstone and Oatly Group
The main advantage of trading using opposite Stepstone and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepstone 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.| Stepstone vs. Munivest Fund | Stepstone vs. Blackrock Muniyield Quality | Stepstone vs. Federated Investors B | Stepstone vs. Federated Premier Municipal |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |