Correlation Between Oatly Group and Minerals Technologies
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Minerals Technologies 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 Minerals Technologies 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 Minerals Technologies, you can compare the effects of market volatilities on Oatly Group and Minerals Technologies 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 Minerals Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Minerals Technologies.
Diversification Opportunities for Oatly Group and Minerals Technologies
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oatly and Minerals is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Minerals Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerals Technologies 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 Minerals Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerals Technologies has no effect on the direction of Oatly Group i.e., Oatly Group and Minerals Technologies go up and down completely randomly.
Pair Corralation between Oatly Group and Minerals Technologies
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Minerals Technologies. In addition to that, Oatly Group is 2.95 times more volatile than Minerals Technologies. It trades about -0.22 of its total potential returns per unit of risk. Minerals Technologies is currently generating about 0.16 per unit of volatility. If you would invest 7,327 in Minerals Technologies on November 9, 2024 and sell it today you would earn a total of 293.00 from holding Minerals Technologies or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Minerals Technologies
Performance |
| Timeline |
| Oatly Group AB |
| Minerals Technologies |
Oatly Group and Minerals Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Minerals Technologies
The main advantage of trading using opposite Oatly Group and Minerals Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Minerals Technologies 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 Minerals Technologies will offset losses from the drop in Minerals Technologies' long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| Minerals Technologies vs. Quaker Chemical | Minerals Technologies vs. Innospec | Minerals Technologies vs. H B Fuller | Minerals Technologies vs. Cabot |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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