Correlation Between Mill City and PS International

Can any of the company-specific risk be diversified away by investing in both Mill City and PS International 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 PS International 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 PS International Group, you can compare the effects of market volatilities on Mill City and PS International 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 PS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mill City and PS International.

Diversification Opportunities for Mill City and PS International

0.15

Correlation Coefficient

Mill City  PS International

Average diversification

The 3 months correlation between Mill and PSIG is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mill City Ventures and PS International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS International 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 PS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS International has no effect on the direction of Mill City i.e., Mill City and PS International go up and down completely randomly.

Pair Corralation between Mill City and PS International

Given the investment horizon of 90 days Mill City is expected to generate 1.56 times less return on investment than PS International. But when comparing it to its historical volatility, Mill City Ventures is 1.06 times less risky than PS International. It trades about 0.02 of its potential returns per unit of risk. PS International Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  52.00  in PS International Group on December 27, 2024 and sell it today you would lose (5.00) from holding PS International Group or give up 9.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mill City Ventures  vs.  PS International Group

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.

PS International

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PS International Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady forward indicators, PS International reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mill City and PS International

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

The idea behind Mill City Ventures and PS International Group 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.