Correlation Between Millennium Silver and Emera Pref

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

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

Diversification Opportunities for Millennium Silver and Emera Pref

0.0

Correlation Coefficient

Millennium Silver  Emera Pref

Pay attention - limited upside

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

Pair Corralation between Millennium Silver and Emera Pref

If you would invest  1,605  in Emera Pref A on October 14, 2024 and sell it today you would earn a total of  95.00  from holding Emera Pref A or generate 5.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Millennium Silver Corp  vs.  Emera Pref A

Millennium Silver Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Millennium Silver Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Millennium Silver is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Emera Pref A

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Emera Pref A are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Emera Pref may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Millennium Silver and Emera Pref

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

The idea behind Millennium Silver Corp and Emera Pref A 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.