Correlation Between Interpublic Group and Millicom International
Can any of the company-specific risk be diversified away by investing in both Interpublic Group and Millicom International 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 Interpublic Group and Millicom International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interpublic Group of and Millicom International Cellular, you can compare the effects of market volatilities on Interpublic Group and Millicom International 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 Interpublic Group with a short position of Millicom International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interpublic Group and Millicom International.
Diversification Opportunities for Interpublic Group and Millicom International
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Interpublic and Millicom is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Interpublic Group of and Millicom International Cellula in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millicom International and Interpublic 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 Interpublic Group of are associated (or correlated) with Millicom International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millicom International has no effect on the direction of Interpublic Group i.e., Interpublic Group and Millicom International go up and down completely randomly.
Pair Corralation between Interpublic Group and Millicom International
Considering the 90-day investment horizon Interpublic Group of is expected to under-perform the Millicom International. But the stock apears to be less risky and, when comparing its historical volatility, Interpublic Group of is 1.22 times less risky than Millicom International. The stock trades about -0.08 of its potential returns per unit of risk. The Millicom International Cellular is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,521 in Millicom International Cellular on September 5, 2025 and sell it today you would earn a total of 715.00 from holding Millicom International Cellular or generate 15.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Interpublic Group of vs. Millicom International Cellula
Performance |
| Timeline |
| Interpublic Group |
| Millicom International |
Interpublic Group and Millicom International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interpublic Group and Millicom International
The main advantage of trading using opposite Interpublic Group and Millicom International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interpublic Group position performs unexpectedly, Millicom International 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 Millicom International will offset losses from the drop in Millicom International's long position.| Interpublic Group vs. Barrick Mining | Interpublic Group vs. Perseus Mining Limited | Interpublic Group vs. Strategic Education | Interpublic Group vs. Jianzhi Education Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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