Correlation Between MillerKnoll and Traeger

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

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

Diversification Opportunities for MillerKnoll and Traeger

0.91

Correlation Coefficient

MillerKnoll  Traeger

Almost no diversification

The 3 months correlation between MillerKnoll and Traeger is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding MillerKnoll and Traeger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traeger and MillerKnoll 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 MillerKnoll are associated (or correlated) with Traeger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traeger has no effect on the direction of MillerKnoll i.e., MillerKnoll and Traeger go up and down completely randomly.

Pair Corralation between MillerKnoll and Traeger

Given the investment horizon of 90 days MillerKnoll is expected to generate 0.81 times more return on investment than Traeger. However, MillerKnoll is 1.24 times less risky than Traeger. It trades about -0.07 of its potential returns per unit of risk. Traeger is currently generating about -0.17 per unit of risk. If you would invest  2,210  in MillerKnoll on December 30, 2024 and sell it today you would lose (234.00) from holding MillerKnoll or give up 10.59% of portfolio value over 90 days.

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

MillerKnoll  vs.  Traeger

MillerKnoll

Risk-Adjusted Performance

Very Weak

Over the last 90 days MillerKnoll has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward-looking signals remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Traeger

Risk-Adjusted Performance

Very Weak

Over the last 90 days Traeger has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with MillerKnoll and Traeger

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

The idea behind MillerKnoll and Traeger 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.