Correlation Between Jianzhi Education and Oatly Group

Can any of the company-specific risk be diversified away by investing in both Jianzhi Education 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 Jianzhi Education and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jianzhi Education Technology and Oatly Group AB, you can compare the effects of market volatilities on Jianzhi Education 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 Jianzhi Education with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jianzhi Education and Oatly Group.

Diversification Opportunities for Jianzhi Education and Oatly Group

-0.58

Correlation Coefficient

Jianzhi Education  Oatly Group

Excellent diversification

The 3 months correlation between Jianzhi and Oatly is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jianzhi Education 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 Jianzhi Education 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 Jianzhi Education 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 Jianzhi Education i.e., Jianzhi Education and Oatly Group go up and down completely randomly.

Pair Corralation between Jianzhi Education and Oatly Group

Allowing for the 90-day total investment horizon Jianzhi Education Technology is expected to generate 0.81 times more return on investment than Oatly Group. However, Jianzhi Education Technology is 1.24 times less risky than Oatly Group. It trades about 0.02 of its potential returns per unit of risk. Oatly Group AB is currently generating about 0.0 per unit of risk. If you would invest  97.00  in Jianzhi Education Technology on December 28, 2024 and sell it today you would lose (5.00) from holding Jianzhi Education Technology or give up 5.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jianzhi Education Technology  vs.  Oatly Group AB

Jianzhi Education

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jianzhi Education Technology are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Jianzhi Education may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Oatly Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oatly Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Oatly Group is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jianzhi Education and Oatly Group

The main advantage of trading using opposite Jianzhi Education and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jianzhi Education 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.

The idea behind Jianzhi Education Technology and Oatly Group AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.