Correlation Between WORK Medical and Oatly Group
Can any of the company-specific risk be diversified away by investing in both WORK Medical 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 WORK Medical and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WORK Medical Technology and Oatly Group AB, you can compare the effects of market volatilities on WORK Medical 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 WORK Medical with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of WORK Medical and Oatly Group.
Diversification Opportunities for WORK Medical and Oatly Group
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WORK and Oatly is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding WORK Medical Technology 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 WORK Medical 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 WORK Medical Technology 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 WORK Medical i.e., WORK Medical and Oatly Group go up and down completely randomly.
Pair Corralation between WORK Medical and Oatly Group
Considering the 90-day investment horizon WORK Medical Technology is expected to under-perform the Oatly Group. In addition to that, WORK Medical is 1.7 times more volatile than Oatly Group AB. It trades about -0.12 of its total potential returns per unit of risk. Oatly Group AB is currently generating about 0.11 per unit of volatility. If you would invest 65.00 in Oatly Group AB on September 14, 2024 and sell it today you would earn a total of 5.00 from holding Oatly Group AB or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WORK Medical Technology vs. Oatly Group AB
Performance |
| Timeline |
| WORK Medical Technology |
| Oatly Group AB |
WORK Medical and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WORK Medical and Oatly Group
The main advantage of trading using opposite WORK Medical and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WORK Medical 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.| WORK Medical vs. IPG Photonics | WORK Medical vs. GMS Inc | WORK Medical vs. Cementos Pacasmayo SAA | WORK Medical vs. Stepan Company |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |