Correlation Between Mill City and Figs
Can any of the company-specific risk be diversified away by investing in both Mill City and Figs 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 Figs 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 Figs Inc, you can compare the effects of market volatilities on Mill City and Figs 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 Figs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mill City and Figs.
Diversification Opportunities for Mill City and Figs
Poor diversification
The 3 months correlation between Mill and Figs is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mill City Ventures and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc 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 Figs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Figs Inc has no effect on the direction of Mill City i.e., Mill City and Figs go up and down completely randomly.
Pair Corralation between Mill City and Figs
Given the investment horizon of 90 days Mill City Ventures is expected to generate 3.4 times more return on investment than Figs. However, Mill City is 3.4 times more volatile than Figs Inc. It trades about 0.07 of its potential returns per unit of risk. Figs Inc is currently generating about 0.12 per unit of risk. If you would invest 594.00 in Mill City Ventures on May 27, 2025 and sell it today you would earn a total of 35.00 from holding Mill City Ventures or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mill City Ventures vs. Figs Inc
Performance |
| Timeline |
| Mill City Ventures |
| Figs Inc |
Mill City and Figs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mill City and Figs
The main advantage of trading using opposite Mill City and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mill City position performs unexpectedly, Figs 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 Figs will offset losses from the drop in Figs' long position.| Mill City vs. Regional Management Corp | Mill City vs. Orix Corp Ads | Mill City vs. KYN Capital Group | Mill City vs. World Acceptance |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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