Correlation Between Millennium Group and Silgan Holdings
Can any of the company-specific risk be diversified away by investing in both Millennium Group and Silgan Holdings 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 Silgan Holdings 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 Silgan Holdings, you can compare the effects of market volatilities on Millennium Group and Silgan Holdings 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 Silgan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millennium Group and Silgan Holdings.
Diversification Opportunities for Millennium Group and Silgan Holdings
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Millennium and Silgan is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Millennium Group International and Silgan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silgan Holdings 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 Silgan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silgan Holdings has no effect on the direction of Millennium Group i.e., Millennium Group and Silgan Holdings go up and down completely randomly.
Pair Corralation between Millennium Group and Silgan Holdings
Given the investment horizon of 90 days Millennium Group International is expected to under-perform the Silgan Holdings. In addition to that, Millennium Group is 2.63 times more volatile than Silgan Holdings. It trades about -0.05 of its total potential returns per unit of risk. Silgan Holdings is currently generating about 0.44 per unit of volatility. If you would invest 5,116 in Silgan Holdings on August 27, 2024 and sell it today you would earn a total of 596.00 from holding Silgan Holdings or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Millennium Group International vs. Silgan Holdings
Performance |
| Timeline |
| Millennium Group Int |
| Silgan Holdings |
Millennium Group and Silgan Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Millennium Group and Silgan Holdings
The main advantage of trading using opposite Millennium Group and Silgan Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Millennium Group position performs unexpectedly, Silgan Holdings 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 Silgan Holdings will offset losses from the drop in Silgan Holdings' long position.| Millennium Group vs. Algoma Steel Group | Millennium Group vs. Kaiser Aluminum | Millennium Group vs. Dave Busters Entertainment | Millennium Group vs. Emerson Radio |
| Silgan Holdings vs. Pactiv Evergreen | Silgan Holdings vs. Myers Industries | Silgan Holdings vs. Sonoco Products | Silgan Holdings vs. Avery Dennison Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |