Correlation Between Mistras and Affirm Holdings
Can any of the company-specific risk be diversified away by investing in both Mistras and Affirm Holdings 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 Mistras and Affirm Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and Affirm Holdings, you can compare the effects of market volatilities on Mistras and Affirm Holdings 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 Mistras with a short position of Affirm Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and Affirm Holdings.
Diversification Opportunities for Mistras and Affirm Holdings
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mistras and Affirm is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Affirm Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affirm Holdings and Mistras 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 Mistras Group are associated (or correlated) with Affirm Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affirm Holdings has no effect on the direction of Mistras i.e., Mistras and Affirm Holdings go up and down completely randomly.
Pair Corralation between Mistras and Affirm Holdings
Allowing for the 90-day total investment horizon Mistras Group is expected to under-perform the Affirm Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Mistras Group is 1.32 times less risky than Affirm Holdings. The stock trades about -0.08 of its potential returns per unit of risk. The Affirm Holdings is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 4,082 in Affirm Holdings on August 30, 2024 and sell it today you would earn a total of 2,545 from holding Affirm Holdings or generate 62.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Mistras Group vs. Affirm Holdings
Performance |
| Timeline |
| Mistras Group |
| Affirm Holdings |
Mistras and Affirm Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and Affirm Holdings
The main advantage of trading using opposite Mistras and Affirm Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, Affirm Holdings 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 Affirm Holdings will offset losses from the drop in Affirm Holdings' long position.| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision Group |
| Affirm Holdings vs. Oneconnect Financial Technology | Affirm Holdings vs. Global Business Travel | Affirm Holdings vs. Alight Inc | Affirm Holdings vs. CS Disco LLC |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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