Correlation Between Oatly Group and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Bangkok Dusit 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 Bangkok Dusit 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 Bangkok Dusit Medical, you can compare the effects of market volatilities on Oatly Group and Bangkok Dusit 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 Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Bangkok Dusit.
Diversification Opportunities for Oatly Group and Bangkok Dusit
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oatly and Bangkok is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical 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 Bangkok Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of Oatly Group i.e., Oatly Group and Bangkok Dusit go up and down completely randomly.
Pair Corralation between Oatly Group and Bangkok Dusit
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Bangkok Dusit. In addition to that, Oatly Group is 18.15 times more volatile than Bangkok Dusit Medical. It trades about 0.0 of its total potential returns per unit of risk. Bangkok Dusit Medical is currently generating about 0.05 per unit of volatility. If you would invest 3,186 in Bangkok Dusit Medical on December 28, 2024 and sell it today you would earn a total of 47.00 from holding Bangkok Dusit Medical or generate 1.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Oatly Group AB vs. Bangkok Dusit Medical
Performance |
Timeline |
Oatly Group AB |
Bangkok Dusit Medical |
Oatly Group and Bangkok Dusit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oatly Group and Bangkok Dusit
The main advantage of trading using opposite Oatly Group and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Bangkok Dusit 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 Bangkok Dusit will offset losses from the drop in Bangkok Dusit'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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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