Correlation Between Oatly Group and Scienture Holdings,

Can any of the company-specific risk be diversified away by investing in both Oatly Group and Scienture Holdings, 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 Scienture Holdings, 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 Scienture Holdings,, you can compare the effects of market volatilities on Oatly Group and Scienture Holdings, 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 Scienture Holdings,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Scienture Holdings,.

Diversification Opportunities for Oatly Group and Scienture Holdings,

0.01

Correlation Coefficient

Oatly Group  Scienture Holdings,

Significant diversification

The 3 months correlation between Oatly and Scienture is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Scienture Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scienture Holdings, 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 Scienture Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scienture Holdings, has no effect on the direction of Oatly Group i.e., Oatly Group and Scienture Holdings, go up and down completely randomly.

Pair Corralation between Oatly Group and Scienture Holdings,

Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Scienture Holdings,. But the stock apears to be less risky and, when comparing its historical volatility, Oatly Group AB is 2.31 times less risky than Scienture Holdings,. The stock trades about -0.03 of its potential returns per unit of risk. The Scienture Holdings, is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  354.00  in Scienture Holdings, on October 27, 2024 and sell it today you would earn a total of  82.00  from holding Scienture Holdings, or generate 23.16% return on investment over 90 days.

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

Oatly Group AB  vs.  Scienture Holdings,

Oatly Group AB

Risk-Adjusted Performance

0 of 100

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 latest uncertain performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Scienture Holdings,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Scienture Holdings, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Oatly Group and Scienture Holdings,

The main advantage of trading using opposite Oatly Group and Scienture Holdings, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Scienture Holdings, 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 Scienture Holdings, will offset losses from the drop in Scienture Holdings,'s long position.

The idea behind Oatly Group AB and Scienture Holdings, 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.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.