Correlation Between Western and Oatly Group
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By analyzing existing cross correlation between Western Digital 475 and Oatly Group AB, you can compare the effects of market volatilities on Western 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 Western with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western and Oatly Group.
Diversification Opportunities for Western and Oatly Group
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Oatly is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Western Digital 475 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 Western 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 Western Digital 475 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 Western i.e., Western and Oatly Group go up and down completely randomly.
Pair Corralation between Western and Oatly Group
Assuming the 90 days trading horizon Western Digital 475 is expected to generate 0.22 times more return on investment than Oatly Group. However, Western Digital 475 is 4.63 times less risky than Oatly Group. It trades about 0.0 of its potential returns per unit of risk. Oatly Group AB is currently generating about -0.02 per unit of risk. If you would invest 9,465 in Western Digital 475 on September 23, 2024 and sell it today you would lose (248.00) from holding Western Digital 475 or give up 2.62% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Western Digital 475 vs. Oatly Group AB
Performance |
Timeline |
Western Digital 475 |
Oatly Group AB |
Western and Oatly Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western and Oatly Group
The main advantage of trading using opposite Western and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western 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.Western vs. Oatly Group AB | Western vs. Treasury Wine Estates | Western vs. Sanyo Special Steel | Western vs. Primo Brands |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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