Correlation Between Tscan Therapeutics and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Tscan Therapeutics 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 Tscan Therapeutics and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tscan Therapeutics and Oatly Group AB, you can compare the effects of market volatilities on Tscan Therapeutics 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 Tscan Therapeutics with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tscan Therapeutics and Oatly Group.
Diversification Opportunities for Tscan Therapeutics and Oatly Group
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tscan and Oatly is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Tscan Therapeutics 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 Tscan Therapeutics 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 Tscan Therapeutics 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 Tscan Therapeutics i.e., Tscan Therapeutics and Oatly Group go up and down completely randomly.
Pair Corralation between Tscan Therapeutics and Oatly Group
Given the investment horizon of 90 days Tscan Therapeutics is expected to under-perform the Oatly Group. But the stock apears to be less risky and, when comparing its historical volatility, Tscan Therapeutics is 1.2 times less risky than Oatly Group. The stock trades about -0.05 of its potential returns per unit of risk. The Oatly Group AB is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 81.00 in Oatly Group AB on August 28, 2024 and sell it today you would lose (7.00) from holding Oatly Group AB or give up 8.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tscan Therapeutics vs. Oatly Group AB
Performance |
| Timeline |
| Tscan Therapeutics |
| Oatly Group AB |
Tscan Therapeutics and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tscan Therapeutics and Oatly Group
The main advantage of trading using opposite Tscan Therapeutics and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tscan Therapeutics 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.| Tscan Therapeutics vs. Apellis Pharmaceuticals | Tscan Therapeutics vs. Iteos Therapeutics | Tscan Therapeutics vs. Day One Biopharmaceuticals | Tscan Therapeutics vs. Acumen Pharmaceuticals |
| Oatly Group vs. Bellring Brands LLC | Oatly Group vs. Ingredion Incorporated | Oatly Group vs. Nomad Foods | Oatly Group vs. Simply Good Foods |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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