Correlation Between ICTS International and Mistras
Can any of the company-specific risk be diversified away by investing in both ICTS International 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 ICTS International and Mistras into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICTS International NV and Mistras Group, you can compare the effects of market volatilities on ICTS International 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 ICTS International with a short position of Mistras. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICTS International and Mistras.
Diversification Opportunities for ICTS International and Mistras
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICTS and Mistras is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding ICTS International NV and Mistras Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mistras Group and ICTS International 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 ICTS International NV 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 ICTS International i.e., ICTS International and Mistras go up and down completely randomly.
Pair Corralation between ICTS International and Mistras
Assuming the 90 days horizon ICTS International NV is expected to generate 0.92 times more return on investment than Mistras. However, ICTS International NV is 1.08 times less risky than Mistras. It trades about -0.05 of its potential returns per unit of risk. Mistras Group is currently generating about -0.11 per unit of risk. If you would invest 493.00 in ICTS International NV on August 31, 2024 and sell it today you would lose (43.00) from holding ICTS International NV or give up 8.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICTS International NV vs. Mistras Group
Performance |
| Timeline |
| ICTS International |
| Mistras Group |
ICTS International and Mistras Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICTS International and Mistras
The main advantage of trading using opposite ICTS International and Mistras positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICTS International 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.| ICTS International vs. Seychelle Environmtl | ICTS International vs. Energy and Water | ICTS International vs. One World Universe | ICTS International vs. Vow ASA |
| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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