Correlation Between Mistras and CBIZ
Can any of the company-specific risk be diversified away by investing in both Mistras and CBIZ 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 CBIZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and CBIZ Inc, you can compare the effects of market volatilities on Mistras and CBIZ 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 CBIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and CBIZ.
Diversification Opportunities for Mistras and CBIZ
Excellent diversification
The 3 months correlation between Mistras and CBIZ is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and CBIZ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBIZ 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 CBIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBIZ Inc has no effect on the direction of Mistras i.e., Mistras and CBIZ go up and down completely randomly.
Pair Corralation between Mistras and CBIZ
Allowing for the 90-day total investment horizon Mistras Group is expected to under-perform the CBIZ. In addition to that, Mistras is 2.5 times more volatile than CBIZ Inc. It trades about -0.11 of its total potential returns per unit of risk. CBIZ Inc is currently generating about 0.4 per unit of volatility. If you would invest 6,598 in CBIZ Inc on August 24, 2024 and sell it today you would earn a total of 1,481 from holding CBIZ Inc or generate 22.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mistras Group vs. CBIZ Inc
Performance |
| Timeline |
| Mistras Group |
| CBIZ Inc |
Mistras and CBIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and CBIZ
The main advantage of trading using opposite Mistras and CBIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, CBIZ 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 CBIZ will offset losses from the drop in CBIZ's long position.| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision Group |
| CBIZ vs. First Advantage Corp | CBIZ vs. Civeo Corp | CBIZ vs. Performant Financial | CBIZ vs. Network 1 Technologies |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |