Correlation Between Mistras and Alight
Can any of the company-specific risk be diversified away by investing in both Mistras and Alight 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 Alight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and Alight Inc, you can compare the effects of market volatilities on Mistras and Alight 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 Alight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and Alight.
Diversification Opportunities for Mistras and Alight
Very good diversification
The 3 months correlation between Mistras and Alight is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Alight Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alight Inc 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 Alight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alight Inc has no effect on the direction of Mistras i.e., Mistras and Alight go up and down completely randomly.
Pair Corralation between Mistras and Alight
Allowing for the 90-day total investment horizon Mistras Group is expected to under-perform the Alight. In addition to that, Mistras is 1.46 times more volatile than Alight Inc. It trades about -0.12 of its total potential returns per unit of risk. Alight Inc is currently generating about 0.13 per unit of volatility. If you would invest 712.00 in Alight Inc on August 24, 2024 and sell it today you would earn a total of 76.00 from holding Alight Inc or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mistras Group vs. Alight Inc
Performance |
| Timeline |
| Mistras Group |
| Alight Inc |
Mistras and Alight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and Alight
The main advantage of trading using opposite Mistras and Alight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, Alight 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 Alight will offset losses from the drop in Alight's long position.| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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