Correlation Between Oatly Group and Global Partner
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Global Partner 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 Oatly Group and Global Partner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oatly Group AB and Global Partner Acq, you can compare the effects of market volatilities on Oatly Group and Global Partner 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 Oatly Group with a short position of Global Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Global Partner.
Diversification Opportunities for Oatly Group and Global Partner
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oatly and Global is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Global Partner Acq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partner Acq and Oatly Group 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 Oatly Group AB are associated (or correlated) with Global Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partner Acq has no effect on the direction of Oatly Group i.e., Oatly Group and Global Partner go up and down completely randomly.
Pair Corralation between Oatly Group and Global Partner
If you would invest 1,003 in Global Partner Acq on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Global Partner Acq or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 1.59% |
Values | Daily Returns |
Oatly Group AB vs. Global Partner Acq
Performance |
Timeline |
Oatly Group AB |
Global Partner Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oatly Group and Global Partner Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oatly Group and Global Partner
The main advantage of trading using opposite Oatly Group and Global Partner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Global Partner 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 Global Partner will offset losses from the drop in Global Partner's long position.Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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