Correlation Between Ecomax and Miller Industries

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

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

Diversification Opportunities for Ecomax and Miller Industries

0.0

Correlation Coefficient

Ecomax  Miller Industries

Pay attention - limited upside

The 3 months correlation between Ecomax and Miller is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ecomax Inc and Miller Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miller Industries and Ecomax 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 Ecomax Inc are associated (or correlated) with Miller Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miller Industries has no effect on the direction of Ecomax i.e., Ecomax and Miller Industries go up and down completely randomly.

Pair Corralation between Ecomax and Miller Industries

If you would invest (100.00) in Ecomax Inc on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Ecomax Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ecomax Inc  vs.  Miller Industries

Ecomax Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ecomax Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Ecomax is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Miller Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Miller Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Ecomax and Miller Industries

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

The idea behind Ecomax Inc and Miller Industries 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.