Correlation Between Millennium Group and Ball

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

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

Diversification Opportunities for Millennium Group and Ball

-0.53

Correlation Coefficient

Millennium Group  Ball

Excellent diversification

The 3 months correlation between Millennium and Ball is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Millennium Group International and Ball Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ball and Millennium Group 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 Group International are associated (or correlated) with Ball. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ball has no effect on the direction of Millennium Group i.e., Millennium Group and Ball go up and down completely randomly.

Pair Corralation between Millennium Group and Ball

Given the investment horizon of 90 days Millennium Group International is expected to generate 8.25 times more return on investment than Ball. However, Millennium Group is 8.25 times more volatile than Ball Corporation. It trades about 0.03 of its potential returns per unit of risk. Ball Corporation is currently generating about 0.06 per unit of risk. If you would invest  190.00  in Millennium Group International on February 28, 2024 and sell it today you would lose (51.46) from holding Millennium Group International or give up 27.08% of portfolio value over 90 days.

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

Millennium Group International  vs.  Ball Corp.

Millennium Group Int

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Millennium Group International 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 forward indicators remain fairly strong which may send shares a bit higher in June 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Ball

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ball Corporation are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, Ball may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Millennium Group and Ball

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

The idea behind Millennium Group International and Ball Corporation 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.