Correlation Between 404280DG1 and Oatly Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between HSBC 521 11 AUG 28 and Oatly Group AB, you can compare the effects of market volatilities on 404280DG1 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 404280DG1 with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of 404280DG1 and Oatly Group.
Diversification Opportunities for 404280DG1 and Oatly Group
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 404280DG1 and Oatly is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding HSBC 521 11 AUG 28 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 404280DG1 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 HSBC 521 11 AUG 28 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 404280DG1 i.e., 404280DG1 and Oatly Group go up and down completely randomly.
Pair Corralation between 404280DG1 and Oatly Group
Assuming the 90 days trading horizon HSBC 521 11 AUG 28 is expected to under-perform the Oatly Group. But the bond apears to be less risky and, when comparing its historical volatility, HSBC 521 11 AUG 28 is 5.02 times less risky than Oatly Group. The bond trades about -0.3 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 |
HSBC 521 11 AUG 28 vs. Oatly Group AB
Performance |
Timeline |
HSBC 521 11 |
Oatly Group AB |
404280DG1 and Oatly Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 404280DG1 and Oatly Group
The main advantage of trading using opposite 404280DG1 and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 404280DG1 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.404280DG1 vs. Freedom Internet Group | 404280DG1 vs. WiMi Hologram Cloud | 404280DG1 vs. Radcom | 404280DG1 vs. Casio Computer Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |