Correlation Between Oatly Group and Mind Medicine
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Mind Medicine 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 Mind Medicine 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 Mind Medicine, you can compare the effects of market volatilities on Oatly Group and Mind Medicine 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 Mind Medicine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Mind Medicine.
Diversification Opportunities for Oatly Group and Mind Medicine
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oatly and Mind is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Mind Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mind Medicine 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 Mind Medicine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mind Medicine has no effect on the direction of Oatly Group i.e., Oatly Group and Mind Medicine go up and down completely randomly.
Pair Corralation between Oatly Group and Mind Medicine
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Mind Medicine. In addition to that, Oatly Group is 1.88 times more volatile than Mind Medicine. It trades about -0.08 of its total potential returns per unit of risk. Mind Medicine is currently generating about 0.28 per unit of volatility. If you would invest 716.00 in Mind Medicine on November 18, 2024 and sell it today you would earn a total of 273.00 from holding Mind Medicine or generate 38.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Mind Medicine
Performance |
| Timeline |
| Oatly Group AB |
| Mind Medicine |
Oatly Group and Mind Medicine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Mind Medicine
The main advantage of trading using opposite Oatly Group and Mind Medicine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Mind Medicine 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 Mind Medicine will offset losses from the drop in Mind Medicine's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Mind Medicine vs. Cybin Inc | Mind Medicine vs. GH Research PLC | Mind Medicine vs. Awakn Life Sciences | Mind Medicine vs. ATAI Life Sciences |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |