Correlation Between Starbucks and Clearmind Medicine

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

By analyzing existing cross correlation between Starbucks and Clearmind Medicine Common, you can compare the effects of market volatilities on Starbucks and Clearmind 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 Starbucks with a short position of Clearmind Medicine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Starbucks and Clearmind Medicine.

Diversification Opportunities for Starbucks and Clearmind Medicine

-0.09

Correlation Coefficient

Starbucks  Clearmind Medicine

Good diversification

The 3 months correlation between Starbucks and Clearmind is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Starbucks and Clearmind Medicine Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearmind Medicine Common and Starbucks 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 Starbucks are associated (or correlated) with Clearmind Medicine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearmind Medicine Common has no effect on the direction of Starbucks i.e., Starbucks and Clearmind Medicine go up and down completely randomly.

Pair Corralation between Starbucks and Clearmind Medicine

Given the investment horizon of 90 days Starbucks is expected to generate 0.41 times more return on investment than Clearmind Medicine. However, Starbucks is 2.45 times less risky than Clearmind Medicine. It trades about 0.09 of its potential returns per unit of risk. Clearmind Medicine Common is currently generating about 0.03 per unit of risk. If you would invest  8,213  in Starbucks on May 7, 2025 and sell it today you would earn a total of  765.00  from holding Starbucks or generate 9.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Starbucks  vs.  Clearmind Medicine Common

Starbucks

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Starbucks are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Starbucks may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Clearmind Medicine Common

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Clearmind Medicine Common are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Clearmind Medicine may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Starbucks and Clearmind Medicine

The main advantage of trading using opposite Starbucks and Clearmind Medicine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starbucks position performs unexpectedly, Clearmind 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 Clearmind Medicine will offset losses from the drop in Clearmind Medicine's long position.

The idea behind Starbucks and Clearmind Medicine Common 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.