Correlation Between Millennium Investment and Arbor Realty

Can any of the company-specific risk be diversified away by investing in both Millennium Investment and Arbor Realty 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 Investment and Arbor Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Millennium Investment Acquisition and Arbor Realty Trust, you can compare the effects of market volatilities on Millennium Investment and Arbor Realty 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 Investment with a short position of Arbor Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millennium Investment and Arbor Realty.

Diversification Opportunities for Millennium Investment and Arbor Realty

0.0

Correlation Coefficient

Millennium Investment  Arbor Realty

Pay attention - limited upside

The 3 months correlation between Millennium and Arbor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Millennium Investment Acquisit and Arbor Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbor Realty Trust and Millennium Investment 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 Investment Acquisition are associated (or correlated) with Arbor Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbor Realty Trust has no effect on the direction of Millennium Investment i.e., Millennium Investment and Arbor Realty go up and down completely randomly.

Pair Corralation between Millennium Investment and Arbor Realty

If you would invest  1,003  in Arbor Realty Trust on May 6, 2025 and sell it today you would earn a total of  117.00  from holding Arbor Realty Trust or generate 11.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Millennium Investment Acquisit  vs.  Arbor Realty Trust

Millennium Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Millennium Investment Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Millennium Investment is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Arbor Realty Trust

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Arbor Realty Trust are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady fundamental drivers, Arbor Realty reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Millennium Investment and Arbor Realty

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

The idea behind Millennium Investment Acquisition and Arbor Realty Trust 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..