Correlation Between Telix Pharmaceuticals and Oatly Group

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

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

Diversification Opportunities for Telix Pharmaceuticals and Oatly Group

0.06

Correlation Coefficient

Telix Pharmaceuticals  Oatly Group

Significant diversification

The 3 months correlation between Telix and Oatly is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Telix Pharmaceuticals Limited 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 Telix Pharmaceuticals 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 Telix Pharmaceuticals Limited 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 Telix Pharmaceuticals i.e., Telix Pharmaceuticals and Oatly Group go up and down completely randomly.

Pair Corralation between Telix Pharmaceuticals and Oatly Group

Considering the 90-day investment horizon Telix Pharmaceuticals Limited is expected to generate 0.62 times more return on investment than Oatly Group. However, Telix Pharmaceuticals Limited is 1.61 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 -0.06 per unit of risk. If you would invest  1,515  in Telix Pharmaceuticals Limited on October 3, 2024 and sell it today you would earn a total of  25.00  from holding Telix Pharmaceuticals Limited or generate 1.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	51.61%
Values	Daily Returns

Telix Pharmaceuticals Limited  vs.  Oatly Group AB

Telix Pharmaceuticals

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Telix Pharmaceuticals Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, Telix Pharmaceuticals is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 uncertain performance in the last few months, the Stock's essential 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 Telix Pharmaceuticals and Oatly Group

The main advantage of trading using opposite Telix Pharmaceuticals and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telix Pharmaceuticals 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 Telix Pharmaceuticals Limited 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.