Correlation Between Minerals Technologies and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Minerals Technologies 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 Minerals Technologies and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minerals Technologies and Oatly Group AB, you can compare the effects of market volatilities on Minerals Technologies 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 Minerals Technologies with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minerals Technologies and Oatly Group.
Diversification Opportunities for Minerals Technologies and Oatly Group
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Minerals and Oatly is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Minerals Technologies 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 Minerals Technologies 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 Minerals Technologies 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 Minerals Technologies i.e., Minerals Technologies and Oatly Group go up and down completely randomly.
Pair Corralation between Minerals Technologies and Oatly Group
Considering the 90-day investment horizon Minerals Technologies is expected to generate 0.33 times more return on investment than Oatly Group. However, Minerals Technologies is 2.99 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 -0.03 per unit of risk. If you would invest 6,144 in Minerals Technologies on November 9, 2024 and sell it today you would earn a total of 1,476 from holding Minerals Technologies or generate 24.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minerals Technologies vs. Oatly Group AB
Performance |
| Timeline |
| Minerals Technologies |
| Oatly Group AB |
Minerals Technologies and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minerals Technologies and Oatly Group
The main advantage of trading using opposite Minerals Technologies and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minerals Technologies 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.| Minerals Technologies vs. Quaker Chemical | Minerals Technologies vs. Innospec | Minerals Technologies vs. H B Fuller | Minerals Technologies vs. Cabot |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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