Correlation Between Millennium Food and Tadiran Hldg

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

By analyzing existing cross correlation between Millennium Food Tech LP and Tadiran Hldg, you can compare the effects of market volatilities on Millennium Food and Tadiran Hldg 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 Food with a short position of Tadiran Hldg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millennium Food and Tadiran Hldg.

Diversification Opportunities for Millennium Food and Tadiran Hldg

-0.44

Correlation Coefficient

Millennium Food  Tadiran Hldg

Very good diversification

The 3 months correlation between Millennium and Tadiran is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Millennium Food Tech LP and Tadiran Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tadiran Hldg and Millennium Food 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 Food Tech LP are associated (or correlated) with Tadiran Hldg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tadiran Hldg has no effect on the direction of Millennium Food i.e., Millennium Food and Tadiran Hldg go up and down completely randomly.

Pair Corralation between Millennium Food and Tadiran Hldg

Assuming the 90 days trading horizon Millennium Food Tech LP is expected to generate 0.85 times more return on investment than Tadiran Hldg. However, Millennium Food Tech LP is 1.17 times less risky than Tadiran Hldg. It trades about 0.01 of its potential returns per unit of risk. Tadiran Hldg is currently generating about -0.05 per unit of risk. If you would invest  19,970  in Millennium Food Tech LP on April 25, 2025 and sell it today you would lose (210.00) from holding Millennium Food Tech LP or give up 1.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Millennium Food Tech LP  vs.  Tadiran Hldg

Millennium Food Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Millennium Food Tech LP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Millennium Food is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tadiran Hldg

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tadiran Hldg has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Millennium Food and Tadiran Hldg

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

The idea behind Millennium Food Tech LP and Tadiran Hldg 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.