Correlation Between Mistras and Blade Air
Can any of the company-specific risk be diversified away by investing in both Mistras and Blade Air 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 Blade Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and Blade Air Mobility, you can compare the effects of market volatilities on Mistras and Blade Air 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 Blade Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and Blade Air.
Diversification Opportunities for Mistras and Blade Air
Very good diversification
The 3 months correlation between Mistras and Blade is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Blade Air Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blade Air Mobility 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 Blade Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blade Air Mobility has no effect on the direction of Mistras i.e., Mistras and Blade Air go up and down completely randomly.
Pair Corralation between Mistras and Blade Air
Allowing for the 90-day total investment horizon Mistras Group is expected to generate 0.15 times more return on investment than Blade Air. However, Mistras Group is 6.49 times less risky than Blade Air. It trades about 0.36 of its potential returns per unit of risk. Blade Air Mobility is currently generating about 0.0 per unit of risk. If you would invest 906.00 in Mistras Group on November 1, 2024 and sell it today you would earn a total of 100.00 from holding Mistras Group or generate 11.04% 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. Blade Air Mobility
Performance |
| Timeline |
| Mistras Group |
| Blade Air Mobility |
Mistras and Blade Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and Blade Air
The main advantage of trading using opposite Mistras and Blade Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, Blade Air 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 Blade Air will offset losses from the drop in Blade Air's long position.| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision Group |
| Blade Air vs. Joby Aviation | Blade Air vs. Archer Aviation WT | Blade Air vs. Innoviz Technologies | Blade Air vs. Origin Materials Warrant |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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