Correlation Between Millennium Group and U Power

Can any of the company-specific risk be diversified away by investing in both Millennium Group and U Power 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 U Power 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 U Power Limited, you can compare the effects of market volatilities on Millennium Group and U Power 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 U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millennium Group and U Power.

Diversification Opportunities for Millennium Group and U Power

0.18

Correlation Coefficient

Millennium Group  U Power

Average diversification

The 3 months correlation between Millennium and UCAR is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Millennium Group International and U Power Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Power Limited 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 U Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Power Limited has no effect on the direction of Millennium Group i.e., Millennium Group and U Power go up and down completely randomly.

Pair Corralation between Millennium Group and U Power

Given the investment horizon of 90 days Millennium Group International is expected to generate 0.57 times more return on investment than U Power. However, Millennium Group International is 1.74 times less risky than U Power. It trades about -0.01 of its potential returns per unit of risk. U Power Limited is currently generating about -0.06 per unit of risk. If you would invest  163.00  in Millennium Group International on May 7, 2025 and sell it today you would lose (10.00) from holding Millennium Group International or give up 6.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Millennium Group International  vs.  U Power Limited

Millennium Group Int

Risk-Adjusted Performance

Weakest

Over the last 90 days Millennium Group International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Millennium Group is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

U Power Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days U Power Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Millennium Group and U Power

The main advantage of trading using opposite Millennium Group and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Millennium Group position performs unexpectedly, U Power 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 U Power will offset losses from the drop in U Power's long position.

The idea behind Millennium Group International and U Power Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.