Correlation Between NewtekOne, 800 and Oatly Group

Can any of the company-specific risk be diversified away by investing in both NewtekOne, 800 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 NewtekOne, 800 and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NewtekOne, 800 percent and Oatly Group AB, you can compare the effects of market volatilities on NewtekOne, 800 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 NewtekOne, 800 with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewtekOne, 800 and Oatly Group.

Diversification Opportunities for NewtekOne, 800 and Oatly Group

-0.74

Correlation Coefficient

NewtekOne, 800  Oatly Group

Pay attention - limited upside

The 3 months correlation between NewtekOne, and Oatly is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding NewtekOne, 800 percent 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 NewtekOne, 800 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 NewtekOne, 800 percent 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 NewtekOne, 800 i.e., NewtekOne, 800 and Oatly Group go up and down completely randomly.

Pair Corralation between NewtekOne, 800 and Oatly Group

Assuming the 90 days horizon NewtekOne, 800 percent is expected to generate 0.05 times more return on investment than Oatly Group. However, NewtekOne, 800 percent is 20.04 times less risky than Oatly Group. It trades about 0.03 of its potential returns per unit of risk. Oatly Group AB is currently generating about -0.01 per unit of risk. If you would invest  2,479  in NewtekOne, 800 percent on December 27, 2024 and sell it today you would earn a total of  21.00  from holding NewtekOne, 800 percent or generate 0.85% return on investment over 90 days.

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

NewtekOne, 800 percent  vs.  Oatly Group AB

NewtekOne, 800 percent

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NewtekOne, 800 percent are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, NewtekOne, 800 is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

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 NewtekOne, 800 and Oatly Group

The main advantage of trading using opposite NewtekOne, 800 and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewtekOne, 800 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 NewtekOne, 800 percent 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.