Correlation Between Mill City and KYN Capital
Can any of the company-specific risk be diversified away by investing in both Mill City and KYN Capital 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 KYN Capital 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 KYN Capital Group, you can compare the effects of market volatilities on Mill City and KYN Capital 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 KYN Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mill City and KYN Capital.
Diversification Opportunities for Mill City and KYN Capital
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mill and KYN is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mill City Ventures and KYN Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KYN Capital Group 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 KYN Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KYN Capital Group has no effect on the direction of Mill City i.e., Mill City and KYN Capital go up and down completely randomly.
Pair Corralation between Mill City and KYN Capital
Given the investment horizon of 90 days Mill City Ventures is expected to generate 4.17 times more return on investment than KYN Capital. However, Mill City is 4.17 times more volatile than KYN Capital Group. It trades about 0.06 of its potential returns per unit of risk. KYN Capital Group is currently generating about 0.08 per unit of risk. If you would invest 223.00 in Mill City Ventures on August 30, 2024 and sell it today you would lose (22.00) from holding Mill City Ventures or give up 9.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.35% |
| Values | Daily Returns |
Mill City Ventures vs. KYN Capital Group
Performance |
| Timeline |
| Mill City Ventures |
| KYN Capital Group |
Mill City and KYN Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mill City and KYN Capital
The main advantage of trading using opposite Mill City and KYN Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mill City position performs unexpectedly, KYN Capital 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 KYN Capital will offset losses from the drop in KYN Capital's long position.| Mill City vs. Consumer Portfolio Services | Mill City vs. Atlanticus Holdings Corp | Mill City vs. Nelnet Inc | Mill City vs. Senmiao Technology |
| KYN Capital vs. Visa Class A | KYN Capital vs. Mastercard | KYN Capital vs. American Express | KYN Capital vs. PayPal Holdings |
Check out your portfolio center.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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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