Correlation Between Mill City and New Amer

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

By analyzing existing cross correlation between Mill City Ventures and New Amer Energy, you can compare the effects of market volatilities on Mill City and New Amer 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 Mill City with a short position of New Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mill City and New Amer.

Diversification Opportunities for Mill City and New Amer

0.0

Correlation Coefficient

Mill City  New Amer

Pay attention - limited upside

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

Pair Corralation between Mill City and New Amer

If you would invest  196.00  in Mill City Ventures on December 27, 2024 and sell it today you would lose (18.00) from holding Mill City Ventures or give up 9.18% of portfolio value over 90 days.

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

Mill City Ventures  vs.  New Amer Energy

Mill City Ventures

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mill City Ventures are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Mill City may actually be approaching a critical reversion point that can send shares even higher in April 2025.

New Amer Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days New Amer Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, New Amer is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mill City and New Amer

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

The idea behind Mill City Ventures and New Amer Energy 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.