Correlation Between Advanced Container and Millennium Group

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

By analyzing existing cross correlation between Advanced Container Technologies and Millennium Group International, you can compare the effects of market volatilities on Advanced Container and Millennium 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 Advanced Container with a short position of Millennium Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Container and Millennium Group.

Diversification Opportunities for Advanced Container and Millennium Group

0.55

Correlation Coefficient

Advanced Container  Millennium Group

Very weak diversification

The 3 months correlation between Advanced and Millennium is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Container Technologie and Millennium Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millennium Group Int and Advanced Container 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 Advanced Container Technologies are associated (or correlated) with Millennium Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millennium Group Int has no effect on the direction of Advanced Container i.e., Advanced Container and Millennium Group go up and down completely randomly.

Pair Corralation between Advanced Container and Millennium Group

Given the investment horizon of 90 days Advanced Container Technologies is expected to under-perform the Millennium Group. In addition to that, Advanced Container is 1.98 times more volatile than Millennium Group International. It trades about -0.12 of its total potential returns per unit of risk. Millennium Group International is currently generating about -0.06 per unit of volatility. If you would invest  165.00  in Millennium Group International on September 21, 2024 and sell it today you would lose (22.00) from holding Millennium Group International or give up 13.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Advanced Container Technologie  vs.  Millennium Group International

Advanced Container

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Advanced Container Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Millennium Group Int

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Millennium Group International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Advanced Container and Millennium Group

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

The idea behind Advanced Container Technologies and Millennium Group International 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.