Correlation Between MaxCyte and Milestone Scientific

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

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

Diversification Opportunities for MaxCyte and Milestone Scientific

0.62

Correlation Coefficient

MaxCyte  Milestone Scientific

Poor diversification

The 3 months correlation between MaxCyte and Milestone is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding MaxCyte and Milestone Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Milestone Scientific and MaxCyte 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 MaxCyte are associated (or correlated) with Milestone Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Milestone Scientific has no effect on the direction of MaxCyte i.e., MaxCyte and Milestone Scientific go up and down completely randomly.

Pair Corralation between MaxCyte and Milestone Scientific

Given the investment horizon of 90 days MaxCyte is expected to under-perform the Milestone Scientific. But the stock apears to be less risky and, when comparing its historical volatility, MaxCyte is 1.5 times less risky than Milestone Scientific. The stock trades about -0.16 of its potential returns per unit of risk. The Milestone Scientific is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  93.00  in Milestone Scientific on December 30, 2024 and sell it today you would earn a total of  6.00  from holding Milestone Scientific or generate 6.45% return on investment over 90 days.

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

MaxCyte  vs.  Milestone Scientific

MaxCyte

Risk-Adjusted Performance

Very Weak

Over the last 90 days MaxCyte has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Milestone Scientific

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Milestone Scientific are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Milestone Scientific unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MaxCyte and Milestone Scientific

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

The idea behind MaxCyte and Milestone Scientific 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.