Correlation Between Silgan Holdings and Millennium Group
Can any of the company-specific risk be diversified away by investing in both Silgan Holdings and Millennium Group 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 Silgan Holdings and Millennium Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silgan Holdings and Millennium Group International, you can compare the effects of market volatilities on Silgan Holdings and Millennium Group 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 Silgan Holdings with a short position of Millennium Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silgan Holdings and Millennium Group.
Diversification Opportunities for Silgan Holdings and Millennium Group
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Silgan and Millennium is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Silgan Holdings and Millennium Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millennium Group Int and Silgan Holdings 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 Silgan Holdings are associated (or correlated) with Millennium Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millennium Group Int has no effect on the direction of Silgan Holdings i.e., Silgan Holdings and Millennium Group go up and down completely randomly.
Pair Corralation between Silgan Holdings and Millennium Group
Given the investment horizon of 90 days Silgan Holdings is expected to generate 0.39 times more return on investment than Millennium Group. However, Silgan Holdings is 2.56 times less risky than Millennium Group. It trades about 0.34 of its potential returns per unit of risk. Millennium Group International is currently generating about -0.08 per unit of risk. If you would invest 5,095 in Silgan Holdings on August 24, 2024 and sell it today you would earn a total of 465.00 from holding Silgan Holdings or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silgan Holdings vs. Millennium Group International
Performance |
| Timeline |
| Silgan Holdings |
| Millennium Group Int |
Silgan Holdings and Millennium Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silgan Holdings and Millennium Group
The main advantage of trading using opposite Silgan Holdings and Millennium Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silgan Holdings position performs unexpectedly, Millennium Group 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 Millennium Group will offset losses from the drop in Millennium Group's long position.| Silgan Holdings vs. Pactiv Evergreen | Silgan Holdings vs. Myers Industries | Silgan Holdings vs. Sonoco Products | Silgan Holdings vs. Avery Dennison Corp |
| Millennium Group vs. Hudson Technologies | Millennium Group vs. Universal Music Group | Millennium Group vs. Inflection Point Acquisition | Millennium Group vs. NL Industries |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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