Correlation Between CoreCivic and Mistras
Can any of the company-specific risk be diversified away by investing in both CoreCivic and Mistras 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 CoreCivic and Mistras into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CoreCivic and Mistras Group, you can compare the effects of market volatilities on CoreCivic and Mistras 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 CoreCivic with a short position of Mistras. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreCivic and Mistras.
Diversification Opportunities for CoreCivic and Mistras
Pay attention - limited upside
The 3 months correlation between CoreCivic and Mistras is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding CoreCivic and Mistras Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mistras Group and CoreCivic 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 CoreCivic are associated (or correlated) with Mistras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mistras Group has no effect on the direction of CoreCivic i.e., CoreCivic and Mistras go up and down completely randomly.
Pair Corralation between CoreCivic and Mistras
Considering the 90-day investment horizon CoreCivic is expected to generate 1.27 times more return on investment than Mistras. However, CoreCivic is 1.27 times more volatile than Mistras Group. It trades about 0.06 of its potential returns per unit of risk. Mistras Group is currently generating about 0.05 per unit of risk. If you would invest 1,434 in CoreCivic on September 14, 2024 and sell it today you would earn a total of 739.50 from holding CoreCivic or generate 51.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CoreCivic vs. Mistras Group
Performance |
| Timeline |
| CoreCivic |
| Mistras Group |
CoreCivic and Mistras Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CoreCivic and Mistras
The main advantage of trading using opposite CoreCivic and Mistras positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoreCivic position performs unexpectedly, Mistras 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 Mistras will offset losses from the drop in Mistras' long position.| CoreCivic vs. ADT Inc | CoreCivic vs. NL Industries | CoreCivic vs. Mistras Group | CoreCivic vs. Evolv Technologies Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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